Research Memo Reminders

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Research Memo Reminders

• Bus 223A

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Format

• Facts relevant ones
• Issue in form of a question
• Law code, regs, cases
• Analysis apply the law to your facts to come up
  with answer and why that is the correct answer
• No need to repeat citations
• Be sure to refer to the law you included in memo
• Conclusion answer the question very short
• Next steps what are you going to do next

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Law

• In your own words paraphrase
• Be sure key points are there
• Example For 163, key words paid or incurred
• Need to have enough of the facts so we can
  compare it to our facts and understand why the
  court reached the conclusion it did.
• Need to state courts holding and WHY it held
  that way.

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Example

• Burgess v. Commr., 8 TC 47 (1947) taxpayer
  borrowed funds from Archer. He later borrowed
  additional funds from Archer to pay interest owed
  to Archer. The court allowed Burgess to deduct
  the interest paid.
• Critique?

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Example

• Burgess v. Commr., 8 TC 47 (1947) B borrowed
  funds from Archer. B later borrowed 4,000 from
  Archer to pay 4,136.44 of interest owed to
  Archer. The 4,000 was deposited into Bs account
  at a Summit Trust which already had about 3,180
  in it. B then wrote several checks from the
  Summit account including one for the interest
  owed to Archer.

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Example - continued

• The IRS disallowed 4,000 of Bs payment of
  interest because it was borrowed from the same
  lender and so was, in substance, not really a
  payment (B still owed interest to Archer).
• The court disagreed with the IRS. The court
  stressed that because B commingled the 4,000
  with other funds, they lost their identity as
  funds from Archer. Also, the court noted that B
  did not solely borrow the money to pay Archer
  because he paid other bills from his Summit
  account as well. Thus, the court held that B had
  made a cash payment and was entitled to the
  interest deduction in the year paid.

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How many cases do you need?

• It depends!
• Are there subtleties in fact patterns that should
  be addressed?
• Are there still questions you have after finding
  your first on point case? (if yes get more
  cases to answer your questions)
• Will client not like your result and likely need
  more convincing? If yes, get a few more cases.

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Addl Reminders

• Include regs in law section if there is nothing
  on point to help you, still note that you looked,
  but there was nothing to address your issue.
• When you find old cases or few cases, be sure to
  use Citator to look for other and more recent
  cases.
• If you use a case where IRS lost (such as
  Burgess), check Citator to see if there is an A
  or NA.
• If yes, then get the AOD for details.

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More Reminders

• Use primary authority
• Use an IRS pub only when you cant find anything
  on point.
• Dont use CCH or RIA editorial materials in your
  law section go to the primary authority that
  they are leading you to.
• Look for other issues for example, will Carol
  be able to deduct interest on her second loan?

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And

• Proofread!
• Use spell check (butt it is knot perfect)
• Use complete sentences.
• Explain rulings in the past tense.
• Use proper citations.
• Reread it pretending you are the IRS are there
  any holes or flaws?

11
Too Bee Oar Know Two Be I have a spelling
checker, It came wit my PC, It plainly marks four
my revue Mistakes witch I can knot sea! Ive run
this poem threw hit, Im sure you wood bee
pleased to no, Its letter perfect in its
weigh, My checker tolled me sew!