Exam 10: Communicating Research Results

Sound writing tips include:

The twomajor elements of a client file are:

Tax-related communications can come in many forms, for example:

In slides and other visual aids, fancy fonts and many colors should be used tocreate a more sophisticated presentation.

Generally, the file memoshould be accompanied in the file by briefs of one or more pertinent cases or administrative pronouncements.

Amy and Frank got married and they have approached you seeking your views about the gift tax and income tax consequences on the following facts. As per the prenuptial agreement, Amy gave toFrank $100,000 of appreciated stock on the morning of their wedding. Amy's basis in the stock was $35,000. Under the terms of the agreement, Frank surrendered all other marital rights and claims toAmy's assets in exchange for these securities. Both Frank and Amy are residents of Arizona. The file memoyou prepared contains the following legal conclusions, based on controlling authority: • IRC Section 2501 imposes a tax on the transfer of property by gift, not when it is received by the donee, but upon the transfer. The donor is taxed, not the donee. • The Supreme Court has held that prenuptial transfers in relinquishment of marital rights are not adequate and full consideration for the transfer of property. So, the transfer is treated as a gift. • Since the prenuptial agreement is enforceable only after the marriage, the transfer has not taken place until after the marriage occurred. Thus, the transfer is eligible for the gift tax marital deduction. • Although the transaction resulted in a gift, nogift tax is imposed due tothe application of the annual exclusion and the unlimited gift tax marital deduction. • Neither party recognizes gross income upon release of the marital rights. Gross income does not include the value of property acquired by gift. • The donee takes the donor's income tax basis in the transferred property. Based on the information provided above, draft a client letter toan unsophisticated client explaining the gift tax consequences and the income tax consequences of the stock transfer.

Initial determinations of the facts of a tax issue are likely tobe incomplete because:

Effective written business communication often makes use of which of the following guidelines?

Even if all of the judicial precedent supports a taxpayer's position, the court still may hold against the taxpayer.

Identify five types of tax-related communications.

The audience for tax research communication is primarily:

Other factors being equal, decisions of which of the following Circuit Courts should be given additional weight when evaluating sources?

The heart of tax research communication is:

An effective speaker should:

Generally, it is better tocite more recent court decisions than older decisions tosupport one's position.

The best way for a practitioner toconfirm his or her understanding of the discussion in a telephone conversation with a client is to:

In order toprovide the greatest amount of information tothe greatest number of listeners, the speaker should direct remarks tothe:

IRS agents are not bound by District Court decisions.

In client files, a practitioner should include all of the following types of underlying legal authority EXCEPT:

Which of the following statements is CORRECT with respect toconflicting tax laws?