What Is the First Step in the Tax Research Process

question 58

Multiple Choice

What is the first step in the tax research process?

• A) Discover all the facts relevant to the taxpayer's transaction.
• B) Decide which tax library to use.
• C) Decide whether to read primary or secondary authority.
• D) Formulate a precise research question.

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Definitions:

Making a Profit

The financial gain realized when the revenue gained from a business activity exceeds the costs, expenses, and taxes involved in sustaining the activity.

Breaking Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Taking a Loss

The action of selling an asset for less than its purchase price, resulting in a financial loss for the seller.

Regulated Natural Monopolies

Companies that operate in a market with no competition due to high infrastructure costs, but their prices and services are regulated by the government to protect consumers.