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The memo is for the researchers

benefit
Purpose:
Organize facts, issues, and conclusions
Facilitate technical reviews by supervisor or
colleagues
Allows for subsequent examination of the
research issue

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 Facts
Brief summary of relevant facts and issues
Issues
A list of tax issues in dispute
Conclusions
Quickly determine whether each issue is
pro or con for taxpayer

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 Support
Detailed review and evaluation of
controlling laws
Full citations
Strengths and weaknesses are developed
Actions to Be Taken
Recommendations for subsequent actions
with client
Other strategies as to tax positions

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See page 349 of the text for the remainder of Exhibit 10-3.
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 Taxpayer may forget potentially
detrimental facts
Taxpayer does not always know
which documents are important
Must rely on taxpayers memory
Loss of records/witnesses
The researcher must use experience
to obtain all of the relevant facts
from the taxpayer

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 Only most important documents
Case briefs
Highlighted copies of primary sources
of law
Highlighted copies of explanatory
material
Related in-house memos
Journal articles
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A well-written court case opinion
contains a wealth of information on
tax issues:

Identifies pertinent tax law

States competing interpretations of the law
Identifies critical facts & issues
Often includes lengthy concurring and
dissenting opinions

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 Regulations seldom held to be invalid
Revenue Rulings and Revenue
Procedures are frequently modified or
held invalid
Higher court decisions receive
additional precedential weight
District and Circuit Court opinions directly
affect only taxpayers in those jurisdictions

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 Important Circuits
2nd Circuit (Includes New York)
Authoritative in traditional sense
9th Circuit (Includes California)
First to introduce innovative or unusual interpretations
Federal Circuit
Authoritative in traditional sense
Older cases
Geometrically declining importance, except for
Supreme Court cases
2nd, 9th and Federal circuits
If it is the only precedent available

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 Tax treatises & journals
Identify current, critical tax issues
Can include comprehensive summary of
controlling law
IRS agents are only bound by
Code
Administrative pronouncements
Supreme Court decisions
Court decisions can be unpredictable
Even with supporting judicial precedent

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 Salutation/social graces/general conclusion

Summary of results

Statement of facts/disclaimer
Disclaim date it lasts for & applicability to that specific person only

Assumptions/limitations
State any assumptions made on the issue

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 Implications of the results

Closing/reference to follow-up
meeting/ social graces

Attachments

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 Main point(s) in 1st paragraph
State well-defined purpose
Avoid filler language
Avoid cliches and jargon
Revise several times if needed
Use social amenities
Use edit and proofreading aids

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