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the hardest thing in the world to understand is the income tax the first step in any tax inquiry is to consult the tax statute im allison christians and im leandra letterman and its time to break into tax in this video were talking about how to read a tax statute thats a universal goal were going to use the u.s internal revenue code as our source document but the principles are general in nature weve got six rules to get everybody started the very first rule of reading a statute is read on the second rule browse the breadcrumbs third follow the cross references fourth consider code clashes fifth scan section 7701 and finally spot the secretary where tax attorneys sometimes get into trouble is not the code section theyre familiar with but the ones theyre not familiar with so there may be more in the statute than initially appears and sometimes that might be in the particular code section itself so there might be something later in the code section that modifies the general rule