Overview
Read the attached scenario. Write a persuasive letter to the IRS addressing all of the issues raised and explaining why your client should not owe any additional taxes. Be sure to cite to controlling authority in support of your contentions. This assignment requires you to critically analyze and discuss all issues presented in efforts to persuasively show why your client’s deductions should be allowed.
Your advice should be given in the form of a letter addressed to Agent McGrue at the Internal Revenue Service. The introduction of the letter should state the important facts. While not ignoring harmful facts, your main focus should be on the facts that are favorable to your client. If there are facts that are unfavorable to your client, you should briefly address them, and show how other facts more dispositive to the issues.
After giving the facts, students should clearly articulate each issue, and state and cite all relevant authority regarding the issues. Once the important facts and issues are stated, students should then persuasively analyze each issue, one by one, incorporating the rules given from the authority previously cited. Provide authority and analysis that supports your client’s position and the deductions that it made. If there are facts and/or authority that are unfavorable to your client, discuss them, but show how and why they should have no bearing on the final resolution. Clear, persuasive, complete, analysis that incorporates authority citations is important for this exercise. For this exercise, you are contacting the IRS on behalf of your client to promote your client’s interests. It is important to provide thorough, persuasive analysis to convince the IRS to agree with your client’s actions.
Please look at the sample memorandum for an example of the format.
You have a maximum of 4 pages for this assignment.
A potential library for you to begin your research is provided below:
26 U.S.C. § 162
26 U.S.C. § 166
26 U.S.C. § 274
Treas. Regs § 1.162-17
Andrew v. Comm’r, 54 TC 239, 244 (1970)
Bernard v. U.S., 11 Cls. Ct. 437 (1986)
Bruns v. Comm’r, 98 T.C.M. 30 (2009)
Comm’r v. Lincoln Savs. & Loan Ass’n, 403 US 345, 352 (1971)
Daville Plywood Corp. v. U.S., 899 F.2d 3, 6 (Fed. Cir. 1990)
International Proprietaries, Inc. v. Comm’r, 18 TC 133 (US Tax Crt. 1952)
Malden Trust Co. v. Comm’r, 110 F.2d. 751 (First Cir. 1940)
IRS Publication No. 17