answered: Written Tax Communications Assignment Choose ONE taxpayer sc

  

Written Tax Communications Assignment
Choose ONE taxpayer scenario listed below and do the following:
1. Perform simple research using the tax research procedures discussed in the video and provided in Chapter 2 and complete a Memo for the Tax File and a Letter to the Client. You may use one WORD document. Attached is a summary of the requirements for the two communications. (I understand these are simple research questions so your communication will be short but still must contain required information).
2. Be as professional as you would be if you were doing this for a tax firm but also be friendly. Use the guidelines below to write your memo and letter.
3. Upload your WORD file to LMS.
Taxpayer Scenarios (choose one):
1. Paris was happy to provide a contribution to her friend Nicole’s campaign for mayor, especially after she heard that charitable contributions are tax deductible. She asks you to verify this. Respond to Paris with your researched conclusion.
2. Pierre Dakota received an IRS letter indicating that he had a tax penalty for failing to file a tax return. He is upset about the penalty but believes he will get a tax deduction for paying the penalty. He is asking if this is correct. Respond to Pierre with your researched conclusion.
3. Matt and Lori Debloski were divorced in 2016. Pursuant to the divorce decree Matt receives $10,000 of alimony each month. Matt is asking whether this alimony is taxable. Respond to Matt with your researched conclusion.
The Internal Research Memo (for Tax File) has the following sections:
1. A well-written memorandum begins with a heading that consists of four entries:
1. The name of the person to whom the memo is addressed.
2. The name of the person who wrote the memo
3. The date
4. The subject – identifying the client and the issue or issues discussed in the memo.
2. State the relevant facts. All significant facts should be included and organized chronologically or topically. Present facts accurately and objectively.
3. Determine the tax issues involved. What are the tax issues being analyzed and addressed? Be concise. Limit this to one or two sentences per issue.
4. Cite the relevant authorities on which the conclusions are based. Cite enough authorities to get a clear understanding of the issue and interpretation of the law.
5. Give the conclusion(s). There should be one conclusion per issue. Each conclusion should answer the question briefly and indicate why the answer is what it is.
6. Provide an analysis. Discuss the relevant citations and how they apply to the issues. Explain how they result in your conclusions.
The Client Letter contains the following:
Properly address the client. The Letter should be dated and contain a proper salutation.
State the research question addressed. This put the focus of the letter to the issue at hand.
Restate the facts. Briefly restate the facts. Caution the client that the advice is valid only for the facts previously outlined.
Provide an analysis. Summarize relevant authorities and their implications for the research question.
Give conclusions and recommendations. Summarize key outcomes of research and any recommendation client action. Properly close letter by thanking client for their business and to contact you if they need further assistance.