Tax Memo Facts: Doug Jones timely submitted his 2009 tax return and elected married filing jointly status with his wife, Darlene. Doug and Darlene did not request an extension for their 2009 tax return. Doug and Darlene owed and paid the IRS $124,000 for their 2009 tax year. Two years later, Doug amended his return and claimed married filing separate status. By changing his filing status, Doug sought a refund for an overpayment for the tax year 2009 (he paid more tax in the original joint
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TAX FILE MEMORANDUM TO: Ted Jones, Gray Chemical Company President FROM: Yessenia Colon, Big 4 Staff Accountant SUBJECT: Grey Chemical Company Research Conclusion DATE: October 29, 2015 The Environmental Protection Agency cited Gray Chemical Company for violations of toxic waste contamination of the air and water surrounding the plant due to its toxic pesticides. The judge found Gray guilty and imposed fines of $15 million. Gray voluntarily set up a charitable fund of $8 million
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[Memorandum] To: Thomas Collura From: Bryan Alread Date: October 6, 2014 Re: Corporate Tax Refund Claim Facts: The client used an extension on their 2010 calendar year tax return to extend their filing date to September 15, 2011. The client electronically filed their return on September 4th but was rejected by the IRS. After making some changes they resubmitted their return on September 9th and was received and accepted by the IRS on September 10th. On June 10th 2014
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October 2, 2014 Tax File Memorandum To: Brett Ouray Facts Kathy and Brett Ouray were married in 1996. In 2014, they consider themselves completely estranged. Due to financial reasons they have decided to not get a divorce or live separately. They also do not have any legal documentation of separation and neither of them has lived outside the home for a significant amount of time. They currently reside together with their three children. They have decided that Brett has contributed more to
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MEMORANDUM To: S. Partner, C.P.A. From: J. Accountant Date: August 27, 2012 Subject: Mr. B. Potato I FACTS Mr. B. Potato, a wealthy real estate investor, recently purchased a house on a parcel of land for $400,000. The house was appraised at a value of $300,000 and the land had an appraised value of $100,000. Mr. Potato plans to tear down the house and replace it with a new house worth $1,500,000 with the intentions of living in it personally. Paying
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Draft Memo Date: Preparer: Group Reviewer: Professor Subject: Qualifying Like-kind Exchange Facts: Twinbrook Corporation purchased a larger manufacturing facility for $2,100,000. Three months after Twinbrook purchased the new facility, it sold the old facility to White Flint Corporation for $2,000,000. Issue: Can Twinbrook Corporation qualify for a like-kind exchange of its manufacturing facilities? If not, under what circumstances would the transaction meet the requirements of a like-kind
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Tax Research Memo TO: John Bonham FROM: RE: Alex and Aubrey Jones (tax year 2010) Facts: Alex Jones is a computer engineer living in Phoenix, AZ with his wife Aubrey, who is an attorney. He is an independent contractor at ABC Inc, a small software company. His contribution is on an application that can locate donut shops. The Jones family owns a Christmas tree farm in Oregon. They own the farm since they report the joint federal income tax return about this farm as a sole proprietorship
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To: ABC Corp. XYZ, XZY 12345 From: Amit Gupta & Marc Rosenfeld Re: Federal tax consequences of cash distribution from LLC Jan 31, 2011 We appreciate the opportunity to advise you regarding this tax matter. To ensure a complete understanding between us, we use our judgment in resolving questions where the tax law is unclear or where conflicts may exist between the taxing authorities. Facts The following facts are based on your written correspondence to us, if these facts are incomplete
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To: Dr. Green Date: 1/31/2010 RE: Tax Memo #1/Gambling Activities Issue #1 Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every other weekend to gamble. He would like to know what criteria are used to determine whether his gambling activities constitute a trade or business for federal income tax purposes and whether or not you think his gambling activities qualify for trade of business status. In the case of Commissioner
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repayment be reported as income by ABC (the S Corp) under that tax benefit doctrine?” If ABC reports income as a result of the refund, this income will be allocated to the shareholders of ABC for year 2015. Thus, the income will be taxed to taxpayers who did not received the benefit of the deduction in year 2014. How do you advise your client? Issue: Should ABC Corporation (The S Corp) report the repayment as income under the tax benefit doctrine? Analysis: The ABC (The S Corp) does not have
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