Facts often are gathered at different times and through different means. Coming up with compelling research topics for a business or economics paper can be tough. Then, compare your memo with the , which illustrates and applies the method we recommend. For example, the footnote for property indicates that the straight-line method of depreciation is used in the financial statements, setting the stage for a visit to the balance sheet and to the tax footnote showing a substantial deferred tax liability for the property. Next, the students addressed issues related to 1 uncertainties whether deferred tax assets will be realized and whether valuation accounts may be needed and 2 uncertainties whether tax positions will be sustained upon audit, which may require the accrual of additional tax liabilities. Another common mistake is to emphasize financial accounting concepts, such as net income and expense, rather than the analogous tax concepts, namely gross income and deduction.
Specific Issues Whether Xerox Corporation is entitled, under the tax treaty, to an indirect foreign tax credit for tax year 1974 for certain Advance Corporation Tax that was paid in the United Kingdom by its affiliated company Rank Xerox Ltd. Likewise, citations to Revenue Rulings should not include the volume and page number. As with other parts of Section A, a heading should precede this part to clearly identify and set off the facts. The manuals on this site were clearly written by experts and help us, college students, a lot! The Four Maxims of Tax Planning The first the major tax planning maxims, entity variable planning, says that a company should use its structure to its advantage. Explain how the facts influence tax consequences.
The students were instructed not to obtain any supplementary information from the company or its accounting firm because that could result in disclosure of confidential information. The annual reports are distributed on the first day of class, and the instructor leads the class on a journey-moving from the financial statements to the footnotes and back several times as information about various accounts or notes is analyzed. The following list will give you some ideas to get started with. Dawn is single with no other jobs, will contribute land and cash with 30% ownership interest. It can be a big project with a lot of weight attached to it. Finally, finish the analysis with the on-point or analogous judicial decision or ruling.
Introduction Business organizations use financial planning techniques to help make decisions that will maximize the net present value of the entity. The company will either go public or sell to large retailer after grow. Findings indicated that certain types of tax cuts can help to create jobs in the short-run. To be logical, the system must allow for easy cross-referencing, providing the reviewer with an easy-to-follow road map or audit trail through the memo as discussed later. A study by the U. Internet Sales Tax Internet sales tax is topic that has been under heavy debate for over a decade.
Similarly, if you cite Reg. As appropriate, express issues in the context of major tax concepts like gross income, capital gain, exclusion, deduction, credit, and basis. This practice reduces taxable income and ultimately the tax liability. In that context, students focused on all significant accounts involving application of Topic 740's rules. To distinguish between pages in different sections of the research memo, page numbers should include two parts--a section number and the page within that section. Charley is required to leaves Mobile at 4:00 pm and arrives at his last stop around 12:00 midnight. The facts as I understand them are as follows: you are a single taxpayer, and provided 100% of the support of your cousin.
Excise Taxes The government taxes the sale of various items, such as cigarettes, beer and wine. For each account, the students conducted research on the applicable U. Express Issues Clearly and Conclusions Early As with the statement of facts, the tax professional should express all issues clearly and unambiguously; that is, the meaning of issues should be subject to only one possible interpretation. When the issue is written unclearly or ambiguously, the tax professional may research the wrong issue. The instructor and students had several meetings and exchanged emails about the preliminary findings and the identification of the most significant accounts requiring analysis in the student reports. Words: 560 - Pages: 3. Before leaving this web site, please remember to complete the short .
Tax professionals do not universally use the same techniques. Due to the time value of money, meaning that a dollar today is worth more than tomorrow, it is beneficial for a company to defer tax liabilities as long as possible. This is the main discussion point that Mr. The students' first step was to read the annual report to learn about the company's operations and financial statements. The photocopied support materials that appear in Section B must include the full text beginning to end of any Code section, regulation, ruling, or judicial decision cited. There are two easily identifiable essential tax research skills.
Nature of the Project The project was an independent study in which graduate students committed to study a published annual report of a designated company for one semester. In 2011, when this proposal takes effect, companies that invest overseas will see an increase in their overall taxes. After the research has begun, the tax professional may realize the need for additional facts or clarifications, which might be obtained through a follow-up telephone conversation, e-mail correspondence, or a formal letter. There are two cases that are on point in determining if Sec. The purpose of which is to receive a double tax benefit offered by taking advantage of both the interest deductions on the new mortgage allowed under I. The court held that the one event was so significant that it constituted a U. Do not expect the reviewer to wade through several highlighted sentences or paragraphs to find the specific passage that you reference.