Internet-based commercial tax research tools.

Editor's note: Mr. Maida and Mr. Brown are members of the AICPA Tax Division's Tax Technology Committee. Edward K. Zollars, CPA, is with Henricks, Martin, Thomas & Zollars, Ltd., Phoenix.

If you would like additional information about this article, contact Mr. Maida at [phone] or [e-mail] or Mr. Brown at [phone] or [e-mail]. Mr. Zollars can be reached at [e-mail].

Over the past ten years, tax research products have changed dramatically, from walls full of books and the clerical chore of filing updates to CD-ROMs updated with monthly replacements. Now, publishers are exploring a new territory by offering research services on the Internet, which threaten to make CDs obsolete just as most firms were getting used to them. This article highlights Web-based tax research products, concentrating on the major on-line commercial publishers (see also Karlin, "Technology-Based Tax Research" 30 The Tax Adviser 124 (February 1999)).

Advantages and Disadvantages of On-line Access

A primary advantage of on-line research services is the ability it gives users to access a tax research library from many locations, when there is a compatible browser and a connection to the Internet, such as a client's office, a home office or even a hotel room.

For some firms, Internet-maintained databases may eliminate the problem of sharing CD-ROMs over a network, which can lead practitioners to borrowing CDs for their PCs from their firm's central library. This can create availability problems when several practitioners need the same research publications or different publications that happen to be on the same CD. If a firm can provide Internet access at the practitioner's desktop, switching to an Internet service solves this.

On-line databases are easier to keep up to date than CDs; as soon as a service provider approves a change, it can be quickly incorporated into an on-line database. Most CDs are updated only on a monthly basis (due to the lag time involved in releasing an update to manufacturing and in shipping it out to customers).

The biggest disadvantage of Internet-based research can be summed up in one word: speed. This is especially true when considering one of the major advantages of Internet technology--the ability to access information from anywhere. Internet speed is always dependent on the slowest link in the chain from a client's PC to a provider's server. No matter what type of connection there is at an office, on the road it is virtually certain to be a dial-up connection. A CD-based service, on the other hand, allows immediate access to a database.

Finally, using most on-line services is different enough from CDs to present a number of training issues. If nothing else, users will have to get used to working with a Web browser, as well as being trained in remote access methods to use on the road.

RIA Checkpoint (http://checkpoint.riag.com)

Research Institute of America's (RIA) Checkpoint comprises several databases, including the Federal Tax Coordinator 2d and the United States Tax Reporter, as well as a full library of source documents and specialized services, such as estate planning and employee benefits.

Checkpoint offers several search methods for locating documents. A database-driven search allows a user to select the databases he wishes to search. Another option is the ability to search databases to which a user does not currently subscribe. Such a search can test the content and usefulness of databases before subscribing, as well as locate pertinent source documents obtainable from other sources.

Searching by default is a modified form of the Folio search syntax that RIA uses for its CD products. Users can search for exact terms, synonyms and words occurring within a certain approximation. Unlike some other products, synonym searching is not automatic; each word must be specified. Also, the program does not display the actual synonyms included in the search. Users must trust that the search engine actually expanded their terms to include all relevant similar terms.

The advanced search syntax is more complex than a Folio search. Users can also do simpler syntax searches that apply a single rule (e.g., search terms occurring within 10 words of each other).

The Checkpoint program remembers which databases were last searched and automatically selects them for future searches. Unfortunately, the standard search screen does not display these, so it is easy to accidentally search the wrong databases.

The program saves a limited number of previous searches automatically. Users can easily retrieve research performed the day before, for example, by simply rerunning a search. Additionally, users can specify that certain searches be saved permanently.

Specialized search templates are available for searching by reference, such as Code section, court case citation, etc.

Using a table of contents is another way to access Checkpoint databases. This appeals to researchers who like to thumb through paper volumes, looking for issues related to their topic. Users can also switch back to a table-of-contents view from a document.

Documents are heavily cross-referenced with hyperlinks to related documents. For example, if a commentary mentions a Code section, a link appears. Similarly, Code sections and regulations link back to related commentary. Links in the Code and regulations appeared in the text when clicking to show the references. Unfortunately, however, a lengthy regulation in combination with a slow Internet connection may take quite a long time to load.

Those who want to feel as comfortable working with the on-line services as they do with hard copy can access information with a topical index. Unlike some other products, RIA indices are conveniently linked to related text.

Checkpoint can create multiple browser windows for viewing several documents (accomplished by clicking the right-hand mouse button on a link and selecting the choice for opening the reference in a new window). This feature is especially useful for simply looking quickly at a reference and then returning to the main document. One slight annoyance is that the system automatically logs out (or times out) after a certain period of inactivity and returns to the login screen. This is a bit annoying if a user is interrupted from research while in the middle of a project.

Checkpoint works best with the latest version of the major Web browsers available from Microsoft and Netscape. In fact, an attempt to access it with Internet Explorer 3.x (a version that shipped with many Windows 95-loaded PCs) results in a warning about needing to update the browser. Attempts to use Checkpoint with a pure text browser (e.g., Lynx on a UNIX platform or some of the browsers being developed for hand-held computers like 3Com's Palm Pilot) generally prove too frustrating to make the attempt worthwhile.

CCH Internet Research Network (http://tax.cch.com and http://hr.cch.com)

The CCH Internet Research Network offers a wide variety of research tools, including the Standard Federal Tax Reporter and various other CCH publications. It also provides a few niceties when logging in, with optional storage of user IDs and passwords that speed up this process. Offsetting this somewhat is the fact that a user must wait through a screen with "cute" special effects while his login is being processed. Note that the exact special effect screen will vary, depending on whether the system is accessed with Netscape Navigator or Internet Explorer.

The main search screen is tabbed by broad reference topics. Unlike with RIA products, users cannot search databases to which they do not subscribe.

CCH has several search types, such as the simple search and the power search, offering many customization options for tightening up a search. By default, the power search uses full Boolean syntax, which is very similar to RIA's advanced search. CCH indicates exactly which words and phrases were searched. Citation searches are also possible, and there is a feature for storing and quickly retrieving favorite searches. The Pension Guide has a topical index, another search method. However, the paragraph references in the index do not link to related material, making the index much less useful that it otherwise could be.

Although a user can create multiple database windows, accidentally logging out of a window requires logging back into all the other windows or facing error messages when trying to use them.

The CCH system handles inactivity much better than RIA. It indicates a time-out, but does not fully log out of the current session.

Internet Research Network functions most effectively with the latest Netscape and Microsoft browsers.

CCH SourceDocs (http://tax.cch.com)

From a cost-benefit standpoint, one of the more interesting products is CCH's SourceDocs. This product gives the user access to the Master Tax Guide, Code, regulations and most other source documents. It also has comprehensive coverage of court cases. All regular Tax Court and Tax Court Memorandum cases are reproduced, as well as all cases reported in the U.S. Tax Cases volumes; the only major component missing is the Board of Tax Appeals cases. Even with that omission, the included cases are far more comprehensive than similar CD-ROM-based products.

The search interface of SourceDocs is far more spartan than the interface of its big brother, the full CCH Internet Tax Research Network. A simple word search box appears at the top of screen, along with a button for a citation search. The advanced capabilities of a power search are not available to SourceDocs subscribers, but that may not be a problem if the primary concern is bringing up a specific source document by citation.

Export capabilities are more limited than those in the other products, but are likely acceptable. Instead of exporting to a text file, SourceDocs offers only a text view option, requiring cutting and pasting to a word-processed document.

This product has fewer links between databases than the more comprehensive products. Additionally, using this product as a less expensive source of materials, rather than buying add-ons to the comprehensive services, requires running product searches after finding a citation.

SourceDocs' browser compatibility is identical to that of the CCH Internet Research Network.

Tax Analysts TaxBase on the Web (http://taxbase.tax.org)

Tax Analysts is in the process of expanding TaxBase from a current news and document offering to one that will offer both current developments and access to historical libraries. This discussion is limited to the daily update service that allows access to electronic versions of Tax Notes Today, State Tax Notes Today, Highlights and Documents and Court Filings. Tax Analysts publishes all these products daily.

Fast access to current tax information is the primary advantage of this service. While the publications contain some articles and current analyses, the meat of the service is access to virtually all source documents generated by government agencies, congressional sources and the courts related to tax practice. The service provides entry screens on each service with just the current day's developments, as well as access to documents for several prior years.

The search screen offers more pull-down menu options than those of the other services reviewed, but does not offer the alternative syntax options (e.g., Boolean vs. plain English) that the RIA and CCH services offer. Searches can be limited to certain types of documents (e.g., court cases or regulations) or some citations (e.g., looking for Rev. Rul. 98-20).

Unlike the other services reviewed, TaxBase is not a replacement for an existing CD-ROM service. The daily update capabilities that the Internet provides are key to its usefulness.

TaxBase works with virtually any browser that supports frames (which may make it easier to use with older browsers); it even works (albeit rather awkwardly) with text-based browsers such as Lynx. One nice feature is that sessions never time out.

West Publishing WestDoc (http://www.westdoc.com)

West Publishing's WestDoc service is distinct from the other services listed here, since there is no fixed fee for unlimited access. Rather, users pay on a per-use basis to access West's extensive library of cases, statutes, regulations and other source documents. At the current price of $10 per document accessed, this arrangement may not make sense for documents regularly accessed, but it can be an invaluable tool for documents needed on rare occasions.

Search tools are limited; searching is primarily through citation, using a standard citation, a party name or docket number.

While not very cost-effective, WestDoc fills in the gaps. For instance, a CCH SourceDocs user could access WestDoc when he also needs access to BTA cases.

Other On-line Products

Two other products deserve some mention for on-line tax research. First, the Bureau of National Affairs Tax Management Portfolios (http://www.bna.com) has recently been released on the Web, and the Tax Practice Series is coming soon. These products will be of interest to researchers using BNA, but wanting to take advantage of on-line access.

Second, Thompson Publishing Group offers TaxLibrary (http://www. taxlibrary.com) on the Web, which is a library of source documents (Code, regulations, revenue rulings, revenue procedures, notices and announcements), along with downloadable fill-in forms, annotated versions of IRS publications, topic guides on tax issues and editorial commentary on current developments. Priced comparably to CCH SourceDocs, this product offers less in the way of source documents (no court cases of any kind or letter rulings), but includes items not found in SourceDocs.

Finally, government agencies and others have been placing documents on the Internet that are freely available. While there are still major gaps (e.g., virtually no Tax Court coverage and only the most recent years' Court of Appeals cases), there is still quite a bit of information that does not require a fee for access. Finding all of it is a bit troublesome, but a number of sites have sprung up to serve as pointers to these resources. As an example, the TaxSites site (http://www.taxsites.com), maintained by Dennis Schmidt of the University of Northern Iowa, is a good source for locating freely available resources on the Web (see Schmidt and Yancey, "Web-Based Tax Resources," 30 The TaxAdviser 98 (February 1999)).

Summary

Today's on-line products give researchers many options. With the strides being made in providing high-speed access to the Internet at a reasonable price, it is likely that on-line methods of delivering information will become the standard among practitioners in the next decade. Even today, many practitioners making use of the "access from anywhere" beneficial nature of products may also find them the perfect solution for research needs.

FROM EDWARD K. ZOLLARS, CPA, PHOENIX, AZ

Co-Editors:

Joseph C. Maida, CPA, MBA Shareholder Nicholas C. Maida, C.P.A., Chartered Princeton, NJ

Steven D. Brown, CPA Managing Partner Brown & Brown, PC McLean, VA