Tax research requires a combination of understanding your issue at hand, careful reading of the Internal Revenue Code (IRC), and sometimes, further research into secondary sources and case law. Below are some steps to guide you. Frequently, the first three steps heavily overlap into a single step.
1. Understand Your Research Question: Clearly define the tax issue you are researching.
2. Identify Relevant Keywords: Once you have a clear understanding of your research question, identify keywords that are relevant to your issue. These could include specific types of income, deductions, credits, or other tax terms.
3. Consult Secondary Sources: Secondary sources, such as treatises, law review articles, and IRS guidance, can provide further explanation and context. They can help you understand how a section of the IRC applies to your issue, or even which section applies.
4. Search the IRC: Use either the keywords you identified or use a citation you already had or found in a secondary source to search the IRC. Most legal databases allow you to search within the IRC using keywords. You can also use the index or table of contents if you are using a print version or if the database provides an electronic index.
5. Read the Code Section Carefully: Once you have identified a potentially relevant section, read it carefully. Pay attention to the specific language used, and make sure you understand how the section operates. Does it apply to the taxpayer and the transaction or event in your research question?
6. Check Definitions: The IRC often defines terms within the sections, or refers to definitions in other sections. Make sure you understand how the IRC is defining any key terms.
7. Consult Annotations: If you are using an annotated version of the IRC (or a if looking at a secondary source), check the annotations for the section. They can provide useful insights into how the section has been interpreted and applied.
8. Look at Related Sections: The IRC is complex, and a single issue may be addressed in multiple sections. Make sure to look at any sections that are cross-referenced, as well as the sections before and after the one you are looking at. It may also be very useful to glance at the Tables of Contents related to relevant sections, to locate yet more useful sections.
9. Again. Consult Secondary Sources: If you are still unclear about certain aspects of your legal issue, revisit the secondary sources. At this stage, sometimes things that initially seemed irrelevant will become relevant, and vice versa. Have you located and read all of the primary sources mentioned in relevant secondary sources, especially primary sources that appeared frequently?
10. Check Case Law: Look at how courts have interpreted the section. Case law can provide valuable insights into how a section of the IRC is applied in practice. You can also use a citator at this stage to locate more case law, other primary sources, and yet more secondary sources, if necessary. That's in addition to using the citator to ensure your case law is still good law!
Remember, tax law is complex and often requires a nuanced understanding of the IRC, regulations, case law, and administrative guidance. If you are unsure about the relevance of a section, it may be helpful to consult with a tax law expert or conduct further research.