Assignment 3: Tax Research Memo
Due Sunday of Week 5, 11:59pm PST
Submit Assignment 3 via D2L Assignment Dropbox
Requirement
Each student must individually complete a tax research project memo. Students should choose one of the three topics below. The memo should be typed and in the format provided (labeled Appendix A-6). Students should use RIA Checkpoint, available through the PSU library to conduct the research. It will be graded on accurately and insightfully analyzing the given facts with proper tax law and citation, as well as presentation (clarity and conciseness of the writing). See the grading rubric below for additional details. Note that only primary sources should be cited. Primary sources include the Internal Revenue Code (IRC), Revenue Rulings, and court cases, but do not include anything from the IRS. The Appendix posted on D2L provides greater details.
The research memo must be submitted on to the dropbox on D2L in PDF form prior to the due date. Outside of extenuating circumstances, late projects will have 5% deducted from the grade for each day beyond the due date, up to a maximum of 20% deduction. Projects will not be accepted after November 12, at which point solutions will be posted.
Choose one of the three topics below:
Topic 1:
Ed has supported his stepdaughter, her husband, and their child since his wife’s death 3 years ago. Ed promised his late wife that he would support her daughter from a former marriage and her daughter’s husband until they both finished college. They live in another state and meet gross income filing requirements (meaning that they have enough income that they are required to file a tax return).
Is Ed entitled to dependency exemptions for the 3 individuals? Make sure to address whether he can get a dependency exemption for each of the three individuals. Remember that you are working for Ed, so state any assumptions that you are making, and if you are not sure about an important detail or assumption, consider addressing the situation for multiple possible circumstances.
Topic 2:
Rowan, a 27 year old computer scientist has AGI of $43,000 in the current year. During the year, he has a medical procedure to help reduce his snoring, which is disrupting his sleep, even though he has not been diagnosed with sleep apnea. His insurance company will not reimburse him for the $4,700 procedure. Write a memo citing the appropriate tax code that that determines whether this expense would be deductible, assuming he itemizes his deductions.
Topic 3:
Denise owns a house in Portland and has AGI of $80,000. During the current year, her house is damaged by an earthquake. She gets an estimate to make the necessary repairs to the house and determines that it will cost $52,000 (she therefore is assumed to have incurred $52,000 in damage). Because she had a high deductible insurance plan for earthquake damage, she is only reimbursed $22,000. Write a memo citing the appropriate tax code that outlines how much she can deduct.
Grading Rubric
| Exceeds Expectations 2 |
Meets Expectations 1 |
Does Not Meet Expectations 0 |
|
|---|---|---|---|
| Identify Facts and Issues | Clearly and concisely identifies the relevant facts and issues from the facts provided. | Identifies most of the relevant facts and issues from the facts provided. | Does not Clearly identify the relevant facts and issues from the facts provided. |
| Context, Purpose, and Audience | Demonstrates a thorough and creative understanding of context, purpose, and audience. | Demonstrate adequate consideration of context, purpose, and audience. | Does not demonstrate appropriate attention to context, purpose, or the intended audience. |
| Identify and Use Relevant Sources of Tax Law | Thoroughly identifies high-quality, credible, and relevant sources of tax law that apply to the facts provided and demonstrates a skillful and thorough use of the sources to enhance the communication. Sources are correctly cited. | Identifies relevant sources of tax law that apply to the facts provided and demonstrates a consistent use and understanding of the sources to support the communication. Sources are generally cited correctly. | Does not identify relevant sources of tax law that apply to the facts provided and or appropriately or effectively use them to support the communication. Sources may not be cited correctly. |
| Analysis | Correctly and concisely analyzes how the relevant sections of law apply to the facts provided. | Adequately analyzes how the relevant sections of law apply to the facts provided. | Does not adequately analyze how the relevant sections of law apply to the facts provided. |
| Propose Reasoned Solution | Thoroughly and accurately summarizes how the relevant laws apply to the facts provided and explains the outcome as it relates to the tax treatment. | Adequately summarizes how the relevant laws apply to the facts provided and explains the outcome as it relates to the tax treatment. | Does not adequately analyze how the relevant laws apply to the facts provided and explains the outcome as it relates to the tax treatment. |
| Manner of Presentation | Message is skillfully delivered with a clear, concise and persuasive authority. Very professional and free of grammatical and typographical errors. | Message is delivered in a clear and concise manners. Demonstrates consistent use of professional communication conventions. Generally free of grammatical and typographical errors. | Does not present the message in a clear or appropriate manner. May contain grammatical and typographical errors. |
| Summarize and Conclude Information | A central message is summarized in a high quality conclusion that provides a recommendation. The message is clearly and concisely written, and provides a logical summary based on the laws, analysis, and proposed solution. | A central message is summarized in a quality conclusion that provides a recommendation. The message is well written, and provides a logical summary based on the laws, analysis, and proposed solution. | Conclusion may not provide a central message is summarized in a quality conclusion that provides a recommendation. The message may not be clear or concise, and may not provide a logical summary based on the laws, analysis, and proposed solution. |
