The purpose of this project is to perform some basic tax research and document your findings and conclusions in a Research Memorandum in the format shown in an Exhibit in Chapter 2 of the textbook

For this project, your research support must include a reference to the Internal Revenue Code and also to a court case that is relevant to your facts and conclusion. You may include additional supports (revenue rulings, revenue procedures, etc.), however, you must include a reference to an IRC section and relevant court case in your support for your conclusion. You should consider both the filing status and personal and dependency exemptions issues involved.

Pierre recently received a tax penalty for failing to file a tax return. He was upset to receive the penalty, but he was comforted by the thought that he will get a tax deduction for paying the penalty. Use an available tax research service to determine if Pierre is correct.