Memorandum To: Joseph, Owner From: Associate CC: Date: April 24, 2012 Subject: Irrevocable Life Insurance Trust The purpose of this memo is to provide you information regarding life insurance is included in your estate, how irrevocable life insurance trust (ILIT) would keep your assets out of your estate, and how your powers have to be restricted in order for this to work. According to Federal Estate and Gift Tax Section 2042, the proceeds of insurance policies on a decedent’s life
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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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Tax Return Position Paper ACC/455 The techniques in use for creating individual and business tax return transactions follow guidelines and rulings set forth under the tax law. The Internal Revenue Code (IRC) of 1939, which contains Title 26 of the United States Code, is the foundations of the tax law (Anderson, Pope, & Kramer, 2010). Ever since its establishment numerous revisions have been applied. The tax law entails primary and secondary sources, substantial
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interoffice memorandum to: All new Hires FROM: KATHLEEN WILBUR SUBJECT: 401(K) ENROLLMENT ENCLOSURES: ENROLLMENT FORM, TRANSAMERICA RETIREMENT SERVICES BROCHURE, SUMMARY PLAN DESCRIPTION, NOTICE TO PARTICIPANTS IF YOU HAVE COMPLETED 90 DAYS WITH THE COMPANY AND ARE AGE 21 YEARS OR OLDER YOU ARE ELIGIBLE TO PARTICIPATE IN THE 401K PLAN. YOU WILL AUTOMATICALLY BE ENROLLED IN OUR COMPANY’S 401K PLAN AT A 3% CONTRIBUTION RATE ON THE FIRST DAY OF THE QUARTER AFTER ACHIEVING ELIGIBILITY
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MEMORANDUM To: Galadriel and John, owner of Marietta Horse Supplies From: Subject: Potential Liability for Accumulated Earnings Tax, and Level of Salaries FACTS Galadriel and John, under you, are owners of Marietta Horse Supplies, C Corp. The company has garnered enough earnings enabling the owners to pay reasonable salaries, although research revealed that the salary level is about one-half or two-thirds of salaries paid by other horse supply businesses with similar size. Owners
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hospital to become income tax exempt under Section 501(c)(3) they must ensure that no portion of the hospital or organizations net earnings benefits any individual or private shareholder associated with the organization. When an organization qualifies as a 501(c)(3), the IRS presumes it is a private foundation unless the organization can show it is a public charity. This excludes statutory public charities such as schools and churches. A charity organization can lose tax exempt benefits if found 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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based on your tax research to explain why the client should choose your recommended business entity. Consider referencing appropriate tax code and regulations. 1. Defend your business entity recommendation by describing the accounting method. Consider the advantages and disadvantages of the business entity based on the following: 1. Cash basis vs. accrual 2. The cost to prep the returns 3. The tax benefits 4. The limited liability protection 5. Employee benefits C. Interpret the tax law pertaining
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based on your tax research to explain why the client should choose your recommended business entity. Consider referencing appropriate tax code and regulations. 1. Defend your business entity recommendation by describing the accounting method. Consider the advantages and disadvantages of the business entity based on the following: 1. Cash basis vs. accrual 2. The cost to prep the returns 3. The tax benefits 4. The limited liability protection 5. Employee benefits C. Interpret the tax law pertaining
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Letter of Authority? The Letter of Authority is an official document that empowers a Revenue Officer to examine and scrutinize a Taxpayer’s books of accounts and other accounting records, in order to determine the Taxpayer’s correct internal revenue tax liabilities. 3. Who issues the Letter of Authority? Letter of Authority, for audit/investigation of taxpayers under the jurisdiction of National Office, shall be issued and approved by the Commissioner of Internal Revenue, while, for taxpayers under
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