Question Details

(Solved) TAX 650 Final Project Guidelines and Rubric Overview The final


Hi. Attached please see the assignment. I have to write memorandum section E and conclusion Section D &E.


Thank you


TAX 650 Final Project Guidelines and Rubric

 

Overview

 

The final project for this course is the creation of a memorandum with appendix (7?10 pages).

 

As an associate working in a privately held enterprise or working with privately held clients, it is imperative to be able to advise clients on the tax implications of

 

their financial investments. The ability to model the tax consequences of transactions and do cost benefit analysis is crucial.

 

For your final project, you will model the role of an associate working in a private consulting firm. You will demonstrate your ability to advise clients on whether

 

they should operate as a sole proprietor, a partnership, an S corporation, or a C corporation. Additionally, using your tax research skills and understanding of

 

federal income taxation, you will have the opportunity to evaluate tax consequences from sales and distributions for their compliance with the Internal Revenue

 

Code and Treasury regulations.

 

The project is divided into four milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final

 

submissions. These milestones will be submitted in Modules Three, Five, Seven, and Eight. The final product will be submitted in Module Nine.

 

In this assignment, you will demonstrate your mastery of the following course outcomes:

 


 


 


 


 


 


 

Recommend an appropriate business tax entity based on the analysis of a tax situation for achieving favorable economic impact on the client?s taxable

 

income

 

Utilize appropriate tax forms and schedules that compute taxable income on individual tax returns and reflect versatility of thought, resulting in the best

 

economic solution for the individual taxpayer

 

Apply accrual and cash basis accounting best practices and moral reasoning in determining when business transactions may be reported for income tax

 

purposes

 

Assess the economic impact on taxable income for the business tax entity in relation to Internal Revenue Code and Treasury regulations and the optimum

 

desired outcomes for the client

 

Evaluate the tax consequences that result from sales or distributions of property for their compliance with IRS Circular 230, Internal Revenue Code, and

 

the American Institute for Certified Public Accountants and for advising the client

 


 

Prompt

 

You are currently working at a mid-sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has

 

$690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in

 

Pensacola, Florida. Bob has estimated that the business might make $300,000 in taxable income.

 


 

Bob?s personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of

 

$6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000.

 

Bob has hired your firm for professional advice regarding whether he should operate as a sole proprietor, a partnership, an S corporation, or a C corporation. He

 

is also considering transferring a possible 40% interest in his new business to his daughter Mandy, age 23 and single.

 

Prepare a memorandum to the client, recommending a type of business entity, including an appendix of supporting IRS tax schedules and forms.

 

Specifically, the following critical elements must be addressed:

 

I.

 


 

Memorandum

 

A. Recommend a type of business entity for the client to consider based on your tax research. Consider justifying your recommendation using the

 

code and regulations that relate to the business entity.

 

B. Differentiate between accrual accounting and cash basis. Based on the type of business and the client?s accounting system, what is the impact

 

when revenue is recognized?

 

C. Based on the decision of accrual vs. cash basis, describe when revenue would be recognized on the sale of inventory, and how the accrual

 

reporting differs from cash basis.

 

D. Determine the economic impact on the client?s financial situation. Based on your decision, determine the potential tax liability, keeping in mind

 

appropriate Internal Revenue Code and Treasury regulations.

 

E. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, broker?s fees,

 

closing costs, appraisals, and surveys and the correct schedule form to complete.

 

F. Justify whether or not the client should choose a business entity that has limited liability protection. Be sure to include possible future liability

 

issues based on the potential economic impact and appropriate Internal Revenue Code and Treasury regulations.

 

G. Describe the tax effect on the recommended business entity and the impact it will have on the client?s personal tax return. Consider addressing

 

how the business entity affects the completion of the 1040 tax form.

 


 

II.

 


 

Conclusion

 

A. Evaluate the economic impact on the client?s personal returns based on the recommended entity. Justify why the client would not choose the

 

other business entities by informing the client of the differences.

 

B. Justify your recommendation regarding the client?s daughter having an ownership interest. Provide details supporting the recommendation

 

taking into consideration the jargon and mechanics of the transaction.

 

C. Summarize, using moral reasoning, cash or accrual basis accounting systems in relation to the selected business entity. Consider how the

 

accounting system impacts revenue recognition, consistent with Internal Revenue Code and Treasury regulations.

 

D. Describe the after tax effects on the client?s cash flow based on the sale of the land that is needed to provide the funds necessary to start the

 

business. Consider including capital gains tax rules.

 

E. Explain whether or not the client and his child should take a salary or cash distribution according to tax purposes and Internal Revenue Code and

 

Treasury regulations. Consider the type of business and the tax effect whether it is salary, dividends, or cash withdrawal.

 


 

III.

 


 

Appendix

 

Based on your recommendation to the client regarding proprietorship, taxable income, and sale of land, complete the appropriate tax schedules and

 

forms described below.

 

A. Prepare the appropriate page of Form 1040 and include the sale of the client?s land on the appropriate tax schedule and form for the

 

recommended business entity. Be certain to complete each tax schedule and form accurately and complete ly.

 

B. Prepare the appropriate schedule and tax forms to reflect taxable income based on your calculations and the disposition of asset. Be certain to

 

complete each tax schedule and form accurately and completely.

 

C. Illustrate how creative problem solving and versatility of thought impact professional advice that you intended to result in the best economic

 

solutions for the client. Consider providing real-world examples to support your claims.

 


 

Milestones

 

Milestone One: Gross Income and Capital Gains

 

In Module Three, you will submit a draft of the gross income and capital gains, analyzing the following critical elements: I. Memorandum, section E, and II.

 

Conclusion, sections D and E. You must compute the property disposition capital gain and taxation of gross income. In completing this assignment, consider the

 

tax effect of salary dividends or cash withdrawal in accordance with Internal Revenue Code and Treasury regulations. This assignment will be submitted as a

 

Word document. This milestone is graded with the Milestone One Rubric.

 

Milestone Two: Revenue Recognition and Accounting Methods

 

In Module Five, you will submit a draft of the revenue recognition and accounting methods, summarizing the following critical elements: I. Memorandum,

 

sections B, C, and D, and II. Conclusion, section C. You will determine revenue recognition and the economic impact of the client?s financial situation. Based on

 

your decision, determine the potential tax liability, keeping in mind appropriate Internal Revenue Code and Treasury regulations. This assignment will be

 

submitted as a Word document. This milestone is graded with the Milestone Two Rubric.

 

Milestone Three: Choice of Business Entity

 

In Module Seven, you will submit a draft of the choice of business entity, analyzing the following critical elements: I. Memorandum, sections A, F, and G, and II.

 

Conclusion, sections A and B. The short paper will communicate tax aspects of business entities to the client. This assignment will be submitted as a Word

 

document. This milestone is graded with the Milestone Three Rubric.

 

Milestone Four: Tax Forms

 

In Module Eight, you will submit IRS draft tax forms, analyzing all of the critical elements in III. Appendix, sections A, B, and C. Based on your research, the tax

 

forms and schedules will support your recommendation to the client. This assignment will be submitted as completed tax forms, which are provided to you in

 

your textbook resource CD or on the IRS website. This milestone is graded with the Milestone Four Rubric.

 


 

Final Submission: Memorandum With Appendix

 

In Module Nine, you will submit a memorandum with an appendix to the client and all IRS tax forms and schedules necessary to support your advice. It should be

 

a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the

 

course. This submission is graded with the Final Product Rubric.

 


 

Deliverables

 

Milestone

 

One

 

Two

 


 

Deliverable

 

Gross Income and Capital Gains

 


 

Module Due

 

Three

 


 

Grading

 

Graded separately; Milestone One Rubric

 


 

Five

 


 

Graded separately; Milestone Two Rubric

 


 

Three

 


 

Revenue Recognition and Accounting

 

Methods

 

Choice of Business Entity

 


 

Seven

 


 

Graded separately; Milestone Three Rubric

 


 

Four

 


 

Tax Forms

 


 

Eight

 


 

Graded separately; Milestone Four Rubric

 


 

Final Submission: Memorandum With

 

Appendix

 


 

Nine

 


 

Graded separately; Final Product Rubric

 


 

Final Product Rubric

 

Guidelines for Submission: Your memorandum must be 7 to 10 pages in length (plus a cover page and references) and must be written in APA format. Use double

 

spacing, 12-point Times New Roman font, and one-inch margins. Your memorandum must include an appendix containing electronic versions of the appropriate

 

IRS tax schedules and forms. Include at least three references cited in APA format.

 

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more informati on,

 

review these instructions.

 

Critical Elements

 

Memo: Business

 

Entity

 


 

Exemplary

 

Meets ?Proficient? criteria and

 

details are justified using

 

appropriate Internal Revenue

 

Code and Treasury regulations

 

relevant to recommended

 

business entity

 

(100%)

 


 

Proficient

 

Recommends a type of business

 

entity for the client to consider

 

that is based on tax research

 

(90%)

 


 

Needs Improvement

 

Recommends a type of business

 

entity but either the cited

 

Internal Revenue Code and

 

Treasury regulations are

 

inaccurate or details are cursory

 

(70%)

 


 

Not Evident

 

Does not recommend a type of

 

business entity

 

(0%)

 


 

Value

 

6.4

 


 

Memo: Accrual

 

Accounting vs. Cash

 

Basis

 


 

Meets ?Proficient? criteria and

 

provides a full description of

 

which entities require accrual

 

and when it is optional

 

(100%)

 


 

Differentiates between accrual

 

accounting and cash basis and

 

identifies the impact of the

 

revenue

 

(90%)

 


 

Memo: Revenue

 

Recognized on the

 

Sale

 


 

Meets ?Proficient? criteria and

 

describes the installment

 

method of reporting revenue

 

(100%)

 


 

Memo: Economic

 

Impact

 


 

Meets ?Proficient? criteria and

 

addresses payroll tax issues and

 

self-employment tax

 

(100%)

 


 

Memo: Tax

 

Consequences

 


 

Meets ?Proficient? criteria and

 

comprehensively addresses all

 

expenses including how best to

 

report on the schedule

 

(100%)

 

Meets ?Proficient? criteria and

 

includes information about

 

limited liability companies

 

(100%)

 


 

Describes when revenue would

 

be recognized and how the

 

reporting differs for accrual

 

accounting vs. cash basis

 

(90%)

 

Determines the economic

 

impact on the client?s financial

 

situation and potential tax

 

liability, and determinations are

 

consistent with Internal

 

Revenue Code and Treasury

 

regulations

 

(90%)

 

Identifies the tax consequences

 

on the sale or exchange of the

 

land consistent with capital

 

gains rules

 

(90%)

 

Justifies whether or not the

 

client should choose a business

 

entity that has limited liability

 

protection and includes possible

 

future liability issues consistent

 

with Internal Revenue Code and

 

Treasury regulations

 

(90%)

 


 

Memo: Limited

 

Liability Protection

 


 

Differentiates between accrual

 

accounting and cash basis and

 

identifies the impact of the

 

revenue, but the details are

 

inaccurate or cursory

 

(70%)

 

Describes when revenue would

 

be recognized and how the

 

reporting differs but details are

 

inaccurate or cursory

 

(70%)

 

Determines the economic

 

impact on the financial situation

 

and potential tax liability but

 

either the referenced Internal

 

Revenue Code and Treasury

 

regulations are inaccurate or

 

details are cursory

 

(70%)

 

Identifies tax consequences but

 

details are either inconsistent

 

with capital gains rules or

 

cursory

 

(70%)

 

Justifies whether or not to

 

choose a business entity that

 

has limited liability protection

 

but does not include possible

 

future liability issues, possible

 

future liability issues are not

 

consistent with Internal

 

Revenue Code and Treasury

 

regulations, or details are either

 

inaccurate or cursory

 

(70%)

 


 

Does not differentiate between

 

accrual accounting and cash

 

basis or does not identify the

 

impact of the revenue

 

(0%)

 


 

6.4

 


 

Does not describe when

 

revenue would be recognized or

 

how the reporting differs

 

(0%)

 


 

6.4

 


 

Does not determine the

 

economic impact on the

 

financial situation and potential

 

tax liability

 

(0%)

 


 

6.4

 


 

Does not identify tax

 

consequences

 

(0%)

 


 

6.4

 


 

Does not justify whether or not

 

to choose a business entity that

 

has limited liability protection

 

(0%)

 


 

6.4

 


 

Memo: Tax Effect

 


 

Meets ?Proficient? criteria and

 

addresses the client?s after tax

 

flow

 

(100%)

 


 

Describes the tax effect on the

 

recommended business entity

 

and the impact on the client?s

 

personal tax return

 

(90%)

 


 

Conclusion:

 

Economic Impact:

 

Personal Returns

 


 

Meets ?Proficient? criteria and

 

shows keen insight into the

 

advantages and disadvantages

 

of choosing appropriate

 

business entities

 

(100%)

 


 

Conclusion:

 

Ownership Interest

 


 

Meets ?Proficient? criteria and

 

uses appropriate voice for the

 

audience

 

(100%)

 


 

Conclusion: Cash or

 

Accrual Basis

 

Accounting System

 


 

Meets ?Proficient? criteria and

 

identifies the impact on revenue

 

recognition consistent with

 

Internal Revenue Code and

 

Treasury regulations

 

(100%)

 


 

Conclusion: Tax

 

Effects on Cash Flow

 


 

Meets ?Proficient? criteria and

 

cites capital gains tax rul es

 

relating to gains and losses

 

(100%)

 


 

Evaluates the economic impact

 

on the client?s personal returns

 

based on the recommended

 

entity and justifies response by

 

including information about the

 

other entities

 

(90%)

 

Justifies recommendation

 

regarding the client?s daughter

 

having an ownership interest

 

using details supporting the

 

recommendation

 

(90%)

 

Summarizes, using moral

 

reasoning, cash or accrual basis

 

accounting systems in relation

 

to the selected business entity

 

consistent with appropriate

 

Internal Revenue Code and

 

Treasury regulations

 

(90%)

 

Describes the after tax effects

 

on the client?s cash flow based

 

on the sale of the land that is

 

needed to start the business

 

(90%)

 


 

Describes the tax effect on the

 

recommended business entity

 

and the impact on the client?s

 

personal tax return, but details

 

are irrelevant or cursory

 

(70%)

 

Evaluates the economic impact

 

of client?s personal returns but

 

does not provide justification or

 

details lack relevance or are

 

cursory

 

(70%)

 


 

Does not describe the tax effect

 

on the recommended business

 

entity and the impact on the

 

client?s personal tax return

 

(0%)

 


 

6.4

 


 

Does not evaluate the economic

 

impact of client?s personal

 

returns

 

(0%)

 


 

6.4

 


 

Justifies recommendation

 

regarding client?s daughter

 

having an ownership interest

 

but details either lack relevance

 

or are cursory

 

(70%)

 

Summarizes cash or accrual

 

basis accounting systems in

 

relation to the selected business

 

entity, but details either lack

 

moral reasoning or are cursory

 

(70%)

 


 

Does not justify the

 

recommendation regarding

 

client?s daughter having

 

ownership interest

 

(0%)

 


 

6.4

 


 

Does not summarize cash or

 

accrual basis accounting

 

systems in relation to the

 

selected business entity

 

(0%)

 


 

6.4

 


 

Describes the after tax effects

 

on the client?s cash flow that are

 

needed to start the business but

 

details are either inaccurate or

 

cursory

 

(70%)

 


 

Does not describe the after tax

 

effects on the client?s cash flow

 

that are needed to start the

 

business

 

(0%)

 


 

6.4

 


 

Conclusion: Salary

 

or Cash Distribution

 


 

Meets ?Proficient? criteria and

 

includes the tax effect on salary,

 

dividends, or cash withdrawal

 

(100%)

 


 

Appendix: Form

 

1040

 


 

Appendix: Schedule

 

and Tax Form

 


 

Appendix:

 

Professional Advice

 


 

Meets ?Proficient? and provides

 

real-world examples to support

 

claims

 

(100%)

 


 

Articulation of

 

Response

 


 

Submission is free of errors

 

related to citations, grammar,

 

spelling, syntax, and

 

organization and is presented in

 

a professional and easy-to-read

 

format

 

(100%)

 


 

Explains whether or not the

 

client and his child should take a

 

salary or cash distribution

 

according to tax purposes and

 

Internal Revenue Code and

 

Treasury regulations

 

(90%)

 

Prepares the appropriate page

 

of Form 1040 accurately and

 

completely, including the sale of

 

the client?s land on the

 

appropriate tax form and

 

schedule

 

(100%)

 

Prepares the appropriate

 

schedule and tax form

 

accurately and completely,

 

reflecting taxable income based

 

on calculations and the

 

disposition of asset

 

(100%)

 

Illustrates how creative problem

 

solving and versatility of

 

thought impacts professional

 

advice intended to result in the

 

best economic solutions for the

 

client

 

(90%)

 

Submission has no major errors

 

related to citations, grammar,

 

spelling, syntax, or organization

 

(90%)

 


 

Explains whether or not the

 

client and his child should take a

 

salary or cash distribution but

 

details are cursory or not

 

consistent with tax purposes

 

and Internal Revenue code and

 

Treasury regulations

 

(70%)

 

Prepares the appropriate page

 

of Form 1040 on the

 

appropriate tax form and

 

schedule, but details are either

 

incomplete or inaccurate

 

(70%)

 

Prepares the appropriate

 

schedule and tax form reflecting

 

taxable income but detai ls are

 

incomplete or inaccurate

 

(70%)

 


 

Illustrates how creative problem

 

solving and versatility of

 

thought impacts professional

 

advice intended to result in the

 

best economic solutions for the

 

client but details are irrelevant

 

or cursory

 

(70%)

 

Submission has major errors

 

related to citations, grammar,

 

spelling, syntax, or organization

 

that negatively impact

 

readability and articulation of

 

main ideas

 

(70%)

 


 

Does not explain whether or not

 

the client and his child should

 

take a salary or cash distribution

 

(0%)

 


 

6.4

 


 

Does not complete the

 

appropriate page of Form 1040

 

and does not include the sale of

 

the client?s land on the

 

appropriate tax form and

 

schedule

 

(0%)

 

Does not prepare the

 

appropriate tax form reflecting

 

taxable income

 

(0%)

 


 

6.4

 


 

Does not illustrate how creative

 

problem solving and versatility

 

of thought impacts professional

 

advice intended to result in the

 

best economic solution for the

 

client

 

(0%)

 


 

6.4

 


 

Submission has critical errors

 

related to citations, grammar,

 

spelling, syntax, or organization

 

that prevent understanding of

 

ideas

 

(0%)

 


 

4

 


 

Earned Total

 


 

6.4

 


 

100%

 


 

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 15, 2019

EXPERT

Tutor

ANSWER RATING

YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now