Memorandum To: John & Jane Smith From: Andrea R. Martinez Date: 11/28/2013 Re: Tax Issues Per my conversation with Mr. and Mrs. Smith regarding their specific tax issues, I have done some research on each matter. The recommendations that follow will be beneficial in helping to reduce their tax liabilities. 1. John Smith tax issues: a) How is the $300,000 treated for purposes of Federal tax income? Gross income, as defined in
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AC553 You Decide Week 4 John and Jane Smith Tax issues and recommendation 1. John Smith Tax Issues: 1(a) How is the $300,000 treated for purposes of Federal Income Tax? Since the $300,000 was derived from a business activity the amount should be included in the Gross Income reported for the John Smith LLC (IRS Regulation 1.61-3(a)). The assumption is being made that none of the income has been reported previously and that the LLC using a cash basis accounting method (IRS Publication
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Acct 553 You Decide John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? The $300,000 is taxable income; the reason is that the IRS always collects taxes when we receive a lump sum payment as compensation for negligence, injury or other wrongdoing. Litigants are allowed to bring up a taxation lawsuit in the case of lump sum payments. John, you will have to that the amount is paid to the government on time so that no fines or penalties are charged
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memo to: | Mr. & Mrs. John smith | from: | carol johnson | subject: | tax issues | date: | September 29, 2012 | | | | | Dear Mr. & Mrs. John Smith: After carefully evaluating your tax issues my staff and I have come to the following conclusions on the questions you presented us. 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? The $300,000 you earned is considered earned income; therefore, it should be reported as gross
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In our presentation we are going to discuss Citing Periodical Print Publication (Magazine). But before we start we need to know what is periodical, which things can be called periodicals and what do we understand by magazine. Periodical: A publication issued at regular intervals, usually monthly or weekly. * Daily Newspapers * Monthly Magazines * Bi-Monthly (Two Months) * Quarterly (Every three months) * Semi-Annual (Every Six months) Magazine: Magazines are publications,
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John Smith tax issues: a. How is the $300,000 treated for purposes of Federal tax income? With most lawyers who handle personal injury case, they work on a contingent-fee arrangement. If the jury awards the client the settlement, then the settlement is taxed to the client not the lawyer. This type of arrangement has been put through the Tax Court which has ruled that the client is the one controlling the decision to either accept the settlement or reject it thus the settlement is income to the
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Memo To: John and Jane Smith From: Alyssa Webster Date: [ 2/2/2014 ] Re: Memo summarizing various tax issues 1. John Smith's Tax Issues Issue (a): How is the $300,000 treated for purposes of federal tax income? Applicable Law and Analysis Code Section 61(a) lists fifteen items that must be included in gross income. Number 1 on this list is compensation for services including fees, commission, fringe benefits and similar items. Number 2 is gross income derived from business (¶4301
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Dear Mr. & Mrs. Smith, It was a pleasure meeting with you on last week. This memo contains a list of the concerns that you mentioned during our meeting and the recommendation I have for each of your concerns. Please call me once you have reviewed the memo so we can go over any questions you may have and work on getting things in order. John's questions: a. How is the $300,000 treated for purposes of Federal tax income? • The $300,000 is included in your gross income. You earned the $300
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1. John Smith tax issues: a. How is the $300,000 treated for purposes of Federal tax income? In this question, the 300,000 would be considered self-employed income, however, just like any other income it can be taxed through the following purposes self-employment (this is your business), federal and last also state taxes. Not every state however does have state taxes so it depends on the state that you are currently living in. When doing taxes you should go to the attorney’s 1040 and enter
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You Decide-Week 4 ACCT553 John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? Mr. Smith, in regards to your $300,000 earnings for the successful litigation of your clients case, this will be treated as current year earnings. The payment fits all three doctrines of income starting with the economic doctrine which states “all income from whatever source derived” IRC Code Sec. 61 (a). The constructive receipt doctrine, outlining constructive receipt of
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