1 - Mercer University



ACC 375 Fall 2005

Tax Research Lab NAME:

As a Mercer student, you have access to the CCH Tax Research Network. Before the advent of the Internet, tax research involved delving into separate books of code, administrative rulings and cases. The bound volumes would take up several rows of bookcases in the library---we’re talking about a lot of books here! CCH’s Tax Research Network enables you to research any topic using primary and secondary sources of tax law, and you never even have to go to the library. All of the tax law sources are accessible from your own computer. After you complete this exercise, you should have a good working knowledge of how to use this tool.

Instructions for the lab activities are listed below. Download this document and type your answers directly in this document and attach the web page(s) from which you got your answers. Substantiation is required for each answer. Be sure to indicate to which question your attachments refer. NOT ATTACHING SUPPORTING DOCUMENTATION FOR EACH ANSWER WILL RESULT IN A DEDUCTION OF POINTS.

• Go to .

• Click on “Log In to Research Products”

• Click on CCH Tax Research Network option.

• Enter your ID - Everyone will have a unique ID so you should have no trouble accessing the site.

1. On the home page, click on the Training and Support Tab.

▪ What number should you call for technical support?

▪ Under the section How Do I? Click on Get Acquainted with Tax Research Network and read the short demo program. Is it possible to have tax news sent to a PDA?

▪ Print off the last page of the Get Acquainted Demo

▪ Click on Find Answers to Your Tax Questions and print off the Table of Contents.

Be sure to attach and label your supporting documents.

2. Click on the Tools tab at the top of the page (print off support for all questions you answer).

• Click on Federal Tax Rates and Tables. What is the Social Security (OASDI) tax cap for 2005?

• The was the standard deduction amount in 1993 for Married Filing Joint and for Single taxpayers?

• Scroll down to Disaster Areas 2005. What was the cause of Rhode Island being on this list?

• Go back to the Tools main menu and click on Unclaimed Property Smart Charts. What is the dormacy period for bank accounts in Georgia?

• From the Tools main menu, click on Mortgage Comparison Calculator. 30 year fixed $200,000 mortgage at 5.67%, with a 15 year $200,000 mortgage fixed at 5.04%. Assume no points and no origination fees. What is the difference in total interest paid over the life of the loan?

3. Go back to the Main Menu. Select the Federal Tax Library by clicking on the Federal tab at the top (be sure to hit your back button to get back to the main page). Check the box under Primary Sources entitled Internal Revenue Code. Enter 280E in the search term box and determine to what this section of the Code refers to. Print off the page and highlight the subject of the section.

4. Click on CCH Federal Tax Weekly – Current Issue (this should be the 9/1/05 issue). Under Practitioner’s Corner, read “KPMG Indictments And Fines Demonstrate Government’s Willingness To Take Criminal Action Against Tax Fraud.”

Answer the following questions and print off your supporting evidence.

How much did the KPMG scheme cost the IRS?

What restrictions were placed on KPMG’s tax practice and are they permanent or temporary?

5. Click on CCH Federal Tax Weekly – Archives. Using the search term “smoking cessation”, locate an article about this topic. Are smoking cessation programs tax deductible? Print off the page and attach.

6. Click on Taxes – the Tax Magazine. Click on a few recent issues (2004-5) and locate an article of interest to you. Print off the article and attached to this assignment along with a TWO paragraph summary.

7. Check the box next to Standard Federal Tax Reporter. In the search term box put “disabled”. How does the tax law define disability for the purpose of the Tax Credit for the Elderly and Disabled? Print off a copy of the page where you got your answer.

8. Under the Federal Library, check Letter Rulings under Primary Sources. Locate LTR 200344010. What was the taxpayer trying to deduct? Why was this an unusual situation? Print off the page where you found the answer and attach.

9. Check the box next to Cases. Put G. Gordon Liddy in the search term box. You should see a Tax Court Case (TCM) and a case where the Tax Court decision was appealed (US-CT-APP). Describe Mr. Liddy’s tax problems. Was Mrs. Liddy able to get innocent spouse relief? Why or why not? You need only print the headnote (summary at the top) for support.

10. Go back to the main menu, leave cases checked, and enter the search term "willie nelson”. Describe some of Willie’s activities with the IRS (no supporting document required).

11. Search the term Scientology in the Cases section. How many cases involving the Church of Scientology do you count (no supporting document required)?

12. Locate a case involving Phil Burke. What type of dancing was at the center of the controversy? Print off the page and attach.

13. Locate a case involving Randy Scott. What was her profession? Did the court find that she was an employee or an independent contractor? Print off the page and attach.

14. Locate a case involving Biltmore Blackman. What was he trying to deduct and why was that deduction denied? Print off the page and attach.

15. Are expenses related to an abortion tax-deductible? Print and attach your evidence.

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