Communicating Research

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• Chapter 10
• Communicating Research
• Results

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COMMUNICATINGRESEARCH RESULTS

• Professional Communications
• File memo
• Client letter
• Evaluation sources of tax law
• Oral presentations

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Professional Communications

• Audience
• Form of communication
• Structure of technical tax communications

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Audience

• Supervisor
• Client
• Others

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Form of Communication

• Telephone call
• Informal discussion in person
• E-mail
• Letter
• For tax professional
• Educated client
• Uneducated client
• Memo

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Structure

• Introduction
• Body
• Conclusion

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Introduction

• 10 of allotted time/space
• Provide a roadmap
• Place message in context
• Generate audience interest
• Set tone for message

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Body

• 80 of allotted time/space
• Present technical material
• Identify 3-6 key points
• Ordering methods
• Hierarchy of sources of tax law
• Historical
• Strengths/weaknesses
• Cost/benefit

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Conclusion

• 10 of allotted time/space
• Tie back to introduction
• Reinforce key elements
• Bring presentation to climax
• Indicate next steps and follow-up action

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File Memo

• Purpose
• Content format
• Attachments

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Purpose

• Prepared for tax professional
• Organize facts, issues, conclusions
• Facilitate technical review
• Allow for subsequent research

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Format Content(1 of 2)

• Facts
• Brief summary of facts issues
• Problems with gathering facts
• Issues
• Tax issues in dispute
• Conclusions
• Quickly determine whether issue is pro or con
  for taxpayer

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Format Content(2 of 2)

• Analysis
• Detailed review evaluation of controlling laws
• Full citation
• Present strengths/weaknesses
• Summary
• Conclusions, recommendations, and strategies

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Fact Gathering Problems

• Taxpayer may forget potentially detrimental facts
• Taxpayer does not know which documents are
  important
• Must rely of taxpayer memories
• Loss of records/witnesses

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Attachments

• Only most important documents
• Case briefs
• Highlighted copies of primary sources of law
• Highlighted copies of explanatory material

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Client Letter

• Purpose
• Content format
• Effective written business communication

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Purpose

• Tailor to sophistication of client
• Follow-up to phone call
• Convey highlights of research
• Deliver general conclusions recommendations

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Format Content(1 of 2)

• No more than 2 pages
• Salutation
• Social graces
• General conclusion
• Summary of results
• Objective of report
• Statement of facts/disclaimer

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Format Content(2 of 2)

• Summary of critical issues
• Implications of results Assumptions/limitations
• Closing
• Reference to follow-up meeting
• Social graces
• Attachments, e.g. file memo, engagement letter

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Effective Written Business Communication

• Main points in 1st paragraph
• State well-defined purpose
• Avoid filler language
• Avoid cliches jargon
• Revise, revise, revise
• Use social amenities
• Use edit proofreading aids

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Evaluating Sources of Tax Law

• Judicial precedent
• Important circuits
• Tax journals
• When to litigate

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Judicial Precedent(1 of 3)

• Regulations seldom held to be invalid
• Most recent court opinion
• Strongest prevailing interpretation of
  controlling law
• Well-written cases provide summary of evolution
  of law

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Judicial Precedent(2 of 3)

• Rev. Ruls. Procs. frequently modified or held
  invalid
• Higher court decisions receive additional
  precedential weight
• District Circuit Court opinions directly affect
  only taxpayers in jurisdiction

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Judicial Precedent(3 of 3)

• Federal Court of Claims Tax Court directly
  affect all taxpayers
• Older cases
• Declining importance
• Except Supreme Court
• 2nd, 9th Federal circuits
• Only precedents available

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Important Circuits

• 2nd (Includes New York)
• Authoritative in traditional sense
• 9th (Includes California)
• First to introduce innovative or unusual
  interpretations
• Federal
• Authoritative in traditional sense

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Tax Journals

• Useful sources
• Identify current, critical tax issues
• Can include comprehensive summary of controlling
  law

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When to Litigate

• IRS agents only bound by
• Code
• Administrative pronouncements
• Supreme Court decisions
• Court decisions can be unpredictable
• Cost/benefit analysis

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Oral Presentations

• Preparation
• Visual aids
• Rehearsal presentation
• Jokes

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Preparation

• Audience
• Content

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Audience

• Why was I asked to speak?
• What do they want?
• What is their attitude?
• What do they already know?
• Who is the audience?

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Content

• Prepare technical aspects
• Concentrate on main points
• Present only highlights necessary to satisfy
  audience

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Visual Aids

• Dos Donts
• Purposes
• Guidelines

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Dos Donts

• Do not constantly look at screen
• Avoid reading text of visual aid word for word
• Use aid to focus audience on discussion
• Avoid having a blank screen

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Purposes

• Non-text visuals to illustrate things difficult
  to convey in words
• Save time by consolidating ideas
• Create interest in a subject
• Emphasize a point or concept
• Organize presentation
• Visual take away items

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Guidelines(1 of 3)

• Emphasize pictures, not numbers
• Replace spreadsheets with pictorials (e.g.,
  graphs)
• 6 6
• Six lines per page
• Six words per line

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Guidelines(2 of 3)

• Use simple fonts
• Use only 1 or 2 text colors
• Simple color scheme
• Primary colors
• Blend well with text
• Use sound sparingly

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Guidelines(3 of 3)

• Test technology before presentation
• Prepare for worst
• Number overhead slides
• Hard copy of computer slides
• Backup supplies

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Rehearsal Presentation(1 of 3)

• At least one dress rehearsal
• Use an audience or video camera
• Helps eliminate distracting mannerisms
• Positioning
• Get physically close to audience
• Move during presentation

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Rehearsal Presentation(2 of 3)

• Eliminate nervous visual distractions
• Vary pitch of voice
• Silence is o.k.
• Dont read directly from outline
• Make eye contact w/audience

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Rehearsal Presentation(3 of 3)

• Be enthusiastic positive
• Avoid cliches
• Dont mention on the fly adjustments
• Observe audience body language

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Jokes

• When in doubt, DONT
• Observe political correctness
• Self-deprecating humor usually o.k.
• You can be humorous w/out telling jokes

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End of Chapter 10