Acct.

321 - Taxation of Individuals Research Assignment #2 - Fall 2011

Purpose:
The purpose of this exercise is to have you work with CCH (Commerce Clearing House) Online Tax Research (IntelliConnect) for the purpose of: 1. Finding and understanding a section of the Internal Revenue Code (IRC) that defines excludable income. 2. Finding and interpreting a related Internal Revenue Ruling (Rev. Rul.). 3. Finding and analyzing a related court case.

Instructions:
To complete this assignment, you must use the CCH tax and accounting research service (CCH Tax Research in the Guilford College Hege Library electronic databases): Access the CCH IntelliConnect service to answer the questions below. Questions to answer: Task: Find federal code and regulations 1. What is the title of Internal Revenue Code 117(a)? 2. What is the marginal tax rate on a transfer that falls within the purview of 117(a) for the recipient? Task: Find federal rulings/ Internal Revenue Bulletin 3. According to Revenue Ruling 77-263, 1977-2 CB 47, what is the marginal tax rate on an athletic scholarship when the athlete decides not to participate in the sport after receiving the scholarship? 4. Assume that you did not know the specific Rev.Rul cited above. What is another way you could find the necessary information in the Intelliconnect system? Whatever your answer, try it in Intelliconnect to see if it works. List the steps you took to find the Rev.Rul without using the specific citation.

Task: Find federal cases - Find and refer to the case at TC Memo 1968-215
(27 TCM 1061) The facts:

5. 6. 7. 8. 9.

What is the taxpayers name? When was this case heard? What are the tax accounting periods (in question)? As explicitly stated in the case, this taxpayer used which method of accounting? What are the components & amounts of tax base in dispute ? What is the amount of additional income tax assessed by the IRS?

The issue: 10. What is the sole issue for the court to rule on? The conclusion: 11. Explain (in your words) the Court's ruling.

RIA Search Section

Authoritative reference to find

Enter your answer

A. Find Federal Code & Regs

1. What is the title of Internal Revenue Code 117(a)? 2. What is the marginal tax rate on a transfer that falls within the purview of 117(a), for the recipient? 3. According to Revenue Ruling 77-263, 1977-2 CB 47, what is the marginal tax rate on an athletic scholarship when the athlete decides not to participate in the sport after receiving the scholarship?
Find and refer to the case at TC Memo 1968-215 (27 TCM 1061)

B. Find Federal Rulings/IRB

C. Find Federal Cases

4. Taxpayer's Name 5. Tax Accounting Periods (in question) 6. As explicitly stated in the case, this taxpayer used which method of accounting? 7. Components & amounts of tax base in dispute 8. Amount of additional income tax assessed by IRS
The Issue The Conclusion

The Facts

9. What is the sole issue for the court to rule on? 10. Briefly explain (in your words) the Court's ruling.