CPA accountant stay current on tax code trends. Sometimes a gray area can be exploited. (910) 399-2705
Tax CPA accountants know IRS regulations aren’t static. There’s usually a period after a new tax regulation gets issued where Folks naturally try to exploit it. So the regulation evolves as the IRS clarifies issues. Sometimes the converse occurs and the IRS gradually closes out an established tax regulation.
These transitions are gray areas in the tax that sometimes you might exploit if your conditions merit it. Naturally it depends on:
- The client’s risk tolerance.
- Existing tax code.
- IRS tax trends.
- Cost effectiveness.
- The client’s tax position.
Staying on top of emerging tax issues is a task
CPAs use:
- IRS announcements.
- Specialized tax information services.
- Revenue Procedures.
- Written determinations.
- IRS audit technique guides.
- Tax court cases.
IRS announcements
The IRS sends out a slew of announcements. Some are basic and remind folks about timelines or requirements. Others signal a variation in established procedure. Some herald new regulations.
How? Go to IRS.gov and subscribe to various e-mail lists.
Specialized tax information services
No single CPA can know the entire IRS code. So expensive tax information services and research bases exist.
How? Your local university might have a subscription you can log into.
Revenue Procedures.
These are “how to” official statements from the IRS. They’re named by successive number for a given year e.g. 2013-11 means it’s the eleventh Rev Proc issued in 2013.
How? They’re published in the IRS Revenue Bulletin.
Written Determinations
These are Private Letter Rulings redacted of personal information. Private Letter Rulings ask the IRS to pre-approve a tax strategy. The IRS has fees and CPA accountants charge fees. If approved, the written determination, a “special dispensation”, guarantees the IRS won’t fight your tax position. Even though written determinations can’t be used as precedence, they show which way the wind blows on tax issues.
How? The IRS publishes these online. Using a tax service saves lots of time.
IRS Audit Technique Guides
Want to know what the IRS will look for and how they do it in an audit? Their auditing guides are on line. I imagine every CPA accountant reads them for areas they specialize in.
How? Online through IRS.gov.
Tax court cases
These are specific to the tax district you live. So sometimes tax code means different things in different area of the country for awhile.
How? Internet articles or a tax research database.
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