What is tax research? What is the purpose of conducting tax research? Are results of tax research conclusive? Explain your response.Tax research is the process of solving tax-related problems by applying tax law to specific sets of facts. Sometimes it involves researching several issues and often is conducted to formulate tax policy. Tax research also is conducted to determine the tax consequences of transactions to specific taxpayers. The tax research process involves six basic steps:1. Determine the facts.2. Identify the issues (questions).3. Locate the applicable authorities.4. Evaluate the authorities and choose those to follow where the authorities conflict.5. Analyze the facts in terms of the applicable authorities.6. Communicate conclusions and recommendations to the client.The results of tax research are not conclusive because the federal tax law is always changing so it will affect the explanation and interpretation of the tax advisor. )Reference:)Pope, T. R., Anderson, K. E., Kramer, J. L., Bandy, D. D., Ford, N. A., Gardner, R. L., Joseph, R.J., Luna, L., Schadewald, M. S. (2011). Prentice hall's federal taxation 2011: Individuals (24th ed). Upper Saddle River, NJ: Pearson Education.Response 2Tax research is basically about questions regarding tax issues, and solving tax related problems by using the appropriate tax law. Tax research would be the identification of pertinent issues, evaluation of the research and being able to use research results. Tax research also helps a business or individual determine what expenditures or deductions wouldbe right for the tax year. Conducting tax research is when a researcher can study the sources of federal tax laws and be able to apply the results to specific situations. Tax research is not always conclusive because they are subject to change. Tax research is important because taxes are important and it has demands on cash flow and substantial impacts on the bottom line of a
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