Tax Research Memo Purpose This assignment is to assess your ability to: Conduct tax research by establishing the facts relating to a tax question, identify the tax issue, find appropriate tax authority, analyze such authority and derive a tax conclusion. Document and communicate the end product of your tax research in an internal research memo format using appropriate tax research methodology as customarily used in practice and learned in your class. Overview Complete tax research on assigned tax problem utilizing the following tax research methodology, and communicate such in a 2- to 3-page paper addressing fully the relevant sections. Each tax research memo should include the following steps: Step 1: Understand facts Step 2: Identify issues (“Issue”) Step 3: Locate relevant authorities (“Rule”) Step 4: Analyze tax authorities (“Analysis”) Step 5: Develop Conclusion (“Conclusion”) This is sometimes referred to in accounting and legal practice lingo by the acronym, “IRAC.” If this helps you remember the process, great! Just do not forget that in practice the facts are critically important and a critical beginning and reiterative element to the research process. Once the results are completed, you need to communicate your tax research. A sample internal research memo is provided in your textbook at Exhibit 2-9. It includes all five of the above steps, but the ordering and documenting of the steps in the memo that is efficient for review and will be used in our course is as follows: 1) FACTS; 2) ISSUE; 3) AUTHORITIES; 4) CONCLUSION AND 5) ANALYSIS. Action Items Complete the research problem as assigned by your instructor. Below is the problem: [LO7 RESEARCH] Jayanna, an advertising consultant, is contemplating instructing some of her clients to pay her in cash so that she does not have to report the income on her tax return. Use an available tax service to identify the three basic elements of tax evasion and penalties associated with tax evasion. Write a...
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