Accounting Data Analytics, Exam 1: Chapters 1-5 cumulative definitions

Federal Court Cases

(5.1) Primary sources of tax law that generally concern controversial areas of taxation.

Ad Valorem

(5.1) A legal instance when the assessment of a tax is according to its property value.

Appellant

(5.1) A party appealing a judicial standpoint to a higher court.

Bona Fide

(5.1) An implication that a judicial standpoint is in good faith, without fraud or deceit. 

Certiorari

(5.1) A process where the U.S. Supreme Court appears to hear a case from a lower appellate court’s decision.

Collateral Estoppel

(5.1) If a factual issue has been determined by a valid judgment, the same parties cannot litigate that factual information again in future litigation of the same parties.

De Facto

(5.1) An implication that a judicial statement is a fact or reality. 

Defendant

(5.1) In civil proceedings, a party that is responding to the complaint.

Dictum

(5.1) A statement or remark in a court opinion that is not necessary to support the decision.

En Banc

(5.1) A decision by a full court, instead of a single judge or selected judges. These occur on the cases of a significant issue.

Enjoin

(5.1) An instance when a judicial statement is commanded or instructed with authority.

Nolo Contendere

(5.1) A trial that ends in no contest.

Non Obstante Veredicto

(5.1) A judicial decision that reverses the jury’s determination.

Parol Evidence

(5.1) A doctrine that renders any evidence for a prior understanding of the parties to a contract completely invalid if it contradicts terms.

Per Curiam

(5.1) An opinion of a judicial court that expresses a decision, but does not identify the author behind it.

Plaintiff

(5.1) The party who initially brings a lawsuit.

Prima Facie

(5.1) An implication that a judicial statement is taken at face value. 

Pro Se

(5.1) An instance when someone chooses to represent themselves in court.

Remand

(5.1) An instance when a higher court sends a case back down to a lower court.

Res Judicata

(5.1) A legal rule that bars the re-litigation of the same set of facts. 

Respondent

(5.1) A judicial party similar to a defendant. In most cases, it is the IRS.

Slip Opinion

(5.1) An individual court decision published separately, shortly after the decision is rendered.

Summary Judgment

(5.1) A court ruling that no factual issues remain to be tried. As a result, the cause of action can be decided without a trial.

Vacate

(5.1) A reversal or abandonment of a court’s prior decision.

Rule 155 Law

(5.1) An instance when the U.S. Tax Court reaches a judicial decision without calculating any taxes.

Golsen Rule

(5.1) A judicial rule that if there are conflicting precedents in Circuit Courts, the U.S. Tax Court is required to follow the precedent in the taxpayer’s jurisdiction.

District Court

(5.3) A trial-level federal court that hears tax cases.

Internal Revenue Service

(4.1) A division of the U.S. Treasury Department that administers tax laws.

IRC Sec. 7805

(4.1) A section of the Internal Revenue Code that allows the Secretary of the U.S. Treasury Department to prescribe rules and regulations necessary to administer the IRC.

Regulation

(4.1) A pronouncement of the tax law that is issued by the IRS and Treasury Department. It is considered to be the official interpretation of the IRC.

Proposed Regulation

(4.1) A form of regulation that is useful for understanding the IRS’ current position, but does not have an effect on the law.

Final Regulation

(4.1) A form of regulation that is finalized and published as a Treasury Decision (TD).

Temporary Regulation

(4.1) A form of regulation that holds the same weight as final regulations, but expire after three years of issuance.

Effective Date of Regulation

(4.1) The date a regulation becomes effective.

Revenue Ruling

(4.1) A pronouncement of the tax law that indicates how the IRS will treat a given taxpayer transaction.

Revenue Procedure

(4.1) A pronouncement of the tax law that instructs taxpayers on how to comply with IRS internal practices and procedures.

Private Letter Ruling

(4.1) A kind of letter ruling that is issued by the National Office of the IRS in response to a taxpayer’s request on a specific tax issue in a proposed transaction.

Technical Advice Memoranda

(4.1) A kind of letter ruling that is requested by an IRS agent during an audit regarding a completed transaction.

Determination Letter

(4.1) A kind of letter ruling that is issued on a taxpayer’s request on a specific tax issue (usually not controversial) related to a completed transaction.

Internal Revenue Bulletin

(4.5) A bulletin created by the IRS, that is used to publish rulings, procedures, regulations, court decisions, and other information valuable to tax professionals. 

Acquiescence

(4.5) An instance when the IRS issues a statement indicating that while it may or may not agree with a decision, they will follow it in similar situations.

Nonacquiescence

(4.5) An instance when the IRS issues a statement indicating they disagree with a decision and will only follow it in specific cases.

Chief Counsel Memoranda

(4.5) A memoranda issued by the IRS’ Office of Chief Counsel that is disseminated as a guide to politics, procedures, instructions, and other information.

Statute

(3.1) A concise summary of the law that outlines its key purpose, scope, and main provisions in a clear and simplified form.

Frivolous Tax Returns

(3.1) A tax return that either lacks sufficient information to determine the taxpayer’s correct liability, or contains information that is clearly intended to delay or impede tax administration.

Tax Treaties

(3.1) Agreements negotiated between countries concerning the treatment of individuals and entities subject to tax in both countries.

Establish the Facts

(2.1) A step in the TR process, where the researcher looks to fully understand all facts that could affect the related tax outcome.

Identify the Issues

(2.1) A step in the TR process, where the researcher uses their education, training, and experience to identify all issues of a tax problem.

Fact Issue

(2.1) A TR issue concerned with information having an objective reality.

Law Issue

(2.1) A TR issue occurring when facts are well-established, but it is not clear which portion of the tax law applies to the issue.

Collateral Estoppel

(2.1) A legal concept that bars re-litigation on the same TR fact or issue.

Locate Authority

(2.1) A step in the TR process, where the researcher must locate the respective legal authority for their issue.

Primary Authority

(2.1) An authority considered an original pronouncement, coming from statutory, administrative, or judicial sources.

Secondary Authority

(2.1) An authority considered an interpretation of a primary authority, and thus an unofficial source of tax information.

Evaluate Authority

(2.1) A step in the TR process, where the researcher must evaluate the usefulness of their selected authorities.

Develop Conclusions and Recommendations

(2.1) A step in the TR process, where the researcher must arrive at their conclusion for the tax issues raised.

Communicate Recommendations

(2.1) A step in the TR process, where the researcher uses a memorandum to communicate the results and recommendations of the research.

Citation

(2.1) A shorthand system of documentation that helps a researcher pinpoint the specific location of relevant text in an authority.

Practice of Taxation

(1.1) The practice of applying tax laws, rules, regulations, and judicial rulings to specific transactions.

Taxation

(1.1) The process of collecting revenue from citizens to fund government operations.

Tax Research

(1.1) An element of tax practice which involves identifying, interpreting, and applying relevant tax laws and authorities to resolve complex tax issues and support accurate decision-making.

Tax Compliance

(1.1) An element of tax practice which involves accurately following tax laws and regulations to prepare, file, and report all required tax obligations on time.

Tax Planning

(1.1) An element of tax practice involving the strategic arrangement of financial activities to minimize tax liability while complying with applicable laws and regulations.

Tax Litigation

(1.1) An element of tax practice involving the process of resolving disputes between taxpayers and law authorities through administrative proceedings or court actions.

Tax Avoidance

(1.1) A legal, legitimate objective to minimize tax liability.

Tax Evasion

(1.1) The process of illegally refusing to pay taxes.

Open Transactions

(1.1) A tax plan for pending future transactions.

Closed Transactions

(1.1) A tax plan for how to best present past transactions.

Contingent Fee

(1.1) A fee based on the successful avoidance of challenge by the IRS, or a successful result in an audit or litigation challenge.

Responsibilities

(1.2) An AICPA Code of Conduct principle which declares that members should exercise professional and moral judgments.

Public Interest

(1.2) An AICPA Code of Conduct principle which declares that members should act in a way that serves the public interest, honors the public trust, and shows a commitment to professionalism.

Integrity

(1.2) An AICPA Code of Conduct principle which declares that members should perform with the highest level of integrity.

Objectivity and Independence

(1.2) An AICPA Code of Conduct principle which declares that members should maintain objectivity and be free of conflicts.

Due Care

(1.2) An AICPA Code of Conduct principle which declares that members should practice professional and ethical standards and strive to improve competence.

Scope and Nature of Services

(1.2) An AICPA Code of Conduct principle which declares that members of the public practice should observe principles of the Code.

Independence Rule

(1.2) An AICPA Code rule which declares that a CPA must be independent of the client they provide services for.

Contingent Fee Rule

(1.2) An AICPA Code rule which declares that a CPA cannot charge/receive a contingent fee for professional services from a client.

Commissions and Referral Fees Rule

(1.2) An AICPA Code rule which declares that a CPA cannot receive a payment from the referral of a third party’s product/service.

Form of Organization and Name Rule

(1.2) An AICPA Code rule which declares that a CPA can only practice in a manner allowed by state law/regulation. They cannot use a misleading name.

Advertising and Solicitation Rule

(1.2) An AICPA Code rule which declares that a CPA cannot use false, misleading, or deceptive advertising or solicitation.

Confidential Client Information Rule

(1.2) An AICPA Code rule which declares that a CPA cannot disclose client information without their consent.

Integrity and Objectivity Rule

(1.2) An AICPA Code rule which declares that a CPA should render services with integrity, without any conflicts of interest.

General Standards Rule

(1.2) An AICPA Code rule which declares that CPAs must maintain competence, due professional care, adequate planning and supervision, and obtain relevant data for conclusions/recommendations.

Compliance with Standards Rule/Accounting Principles Rule

(1.2) An AICPA Code rule which declares that a CPA must comply with all promulgated standards adopted by AICPA Council designees.

Acts Discreditable Rule

(1.2) An AICPA Code rule which declares that a CPA must not commit an act that discredits the profession.

Nonregulatory Ethics

(1.2) The process of making ethical choices that are not clearly defined in standards or laws of conduct.

End-Based Reasoning

(1.2) A form of ethical reasoning that suggests an action is “right” if it produces at least as much net good as any alternative action that could have been produced.

Rule-Based Reasoning

(1.2) A form of ethical reasoning which suggests that rules apply to everyone, with no exceptions.

Care-Based Reasoning

(1.2) A form of ethical reasoning which suggests that decisions are based on the treatment one would like to receive.

Ethical Professional Behavior

(1.2) The process of consistently applying honesty, integrity, and professional judgment to ensure compliance with laws and uphold trust.

Morality

(1.2) A form of ethical professional behavior which suggests there is a continuum of morally right and wrong accountants tread through their actions.

Social Responsibility

(1.2) A form of ethical professional behavior which suggests that accountants should exceed the minimum required legal responsibility to perform a social benefit through their practices.

Business Ethics

(1.2) A form of ethical professional behavior which suggests that judgments must be exercised for a purpose greater than simply making a profit.