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Accounting · Studypool

Accounting Question

Post ID: 3345858

Assignment #1

Overview

Research is a big part of being a tax practitioner. Researching income and adjustments to income is critical for arriving at the adjusted gross income (AGI). Using Internal Revenue Service (IRS) resources, professional publications, and articles that are written by practitioners will inform your decisions. There isn’t always a clear answer, so relying on primary sources and applying the Internal Revenue Code (IRC) will provide you with the confidence to support the tax position you will recommend. You will need to form an opinion of the tax position based on your research and justify your interpretation of the tax code.

Scenario

You are a junior accountant at a medium-sized CPA firm. Your department has flagged several cases that require a review of gross income. The research you perform will assist you in determining if the item under review needs to be reported as income and, if so, how. Your manager would like you to document your interpretation of the Internal Revenue Code (IRC) and requirements to report (or not report) on the three cases under review.

Directions

Open the Module Two Income List found in the Supporting Materials section and select three cases to research. Use the Module Two Income Assignment Template found in the What to Submit section and enter the names of the selected cases by copy and pasting the title into the template row labelled Case Selected. Then, complete the table for each of the three cases you’ve selected. Do this for each case to demonstrate your application of the research process using the Tax Research Guide found in the Supporting Materials section to perform your research. Be sure to cite your sources as shown in the example, specifically the IRC location, and interpret your understanding of the IRC language.

Based on your research, you will gauge your opinion of the tax position for each case and the confidence level followed by your interpretation of the IRC. You’ll also make suggestions or requests for further information, as needed.

Specifically, you must address the following rubric criteria for each of the three cases you choose to research:

  1. Identify the research topic using specific words to describe the intent. Include the following:
    1. Identify the area to be researched.
    2. Specify the approach to the research to determine taxability.
  2. Identify a primary source using the IRC section number that applies to the case research topic. Include the following:
    1. Use resources listed in supplemental materials
    2. Mirror the example on the template and cite the IRS code. Be specific.
  3. Identify a secondary source using the section of an IRS publication that clarifies the issue. Include one or more of the following:
    1. IRS publications
    2. IRS forms and instructions
    3. IRS articles
  4. Identify a supplemental source that describes the topic in plain language. Include one or more of the following:
    1. Professional organizations
    2. Professional articles
  5. State an opinion on whether income is taxable or nontaxable that is supported by research.
  6. Select a confidence level in the research. Choose high, medium, or low.
  7. Interpret the confidence level by connecting the research to the determination of taxability, making specific points. Include the following:
    1. Explain why the research topic is taxable or not based on research.
    2. Determine if additional information is needed to increase your confidence level.

What to Submit

You will submit a completed Module Two Income Assignment template.

Supporting Materials

The following resources support your work on the project:

Videos: IRS Videos Resource: Module Two Income List Resource: Tax Research Guide Research Resources:

Assignment #2!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Overview

Research is a big part of being a tax practitioner. Researching income and adjustments to income are critical for arriving at adjusted gross income (AGI). IRS resources, professional publications, and articles written by practitioners will inform your decisions. There isn’t always a clear answer so relying on primary sources and applying the Internal Revenue Code (IRC) will provide the confidence needed to support the tax position you recommend. It is essential that you understand how and when adjustments for adjusted gross income can be applied.

Scenario

You are a junior accountant at a medium-sized CPA firm. Your manager wants you to become familiar with the tax code and how it determines taxability. Your research will assist you in understanding how and when to report certain items as adjustments for AGI. Your manager would like you to document your research in the Module Two AGI Assignment template located in the What to Submit section to clarify your understanding of the tax code and justify your interpretations of the IRC requirements to report (or not report) the topic in question.

Directions

Using the topics listed in Module Two Adjusted Gross Income List in the Supporting Materials section, determine when and how the topic applies to AGI. Give scenarios to show that you understand what is taxable and what is nontaxable. There are several websites listed in the Supporting Materials section that will help you find the code and examples of application. You may also wish to view the Adjustments to Income section found on Schedule 1 to further understand how deductions are included in the calculation of adjusted gross income. Keep in mind, however, that Schedule 1, and its accompanying information, is updated annually and subject to change. Thus, be sure to research the correct tax year.

Select one topic from the Module Two Adjusted Gross Income List in the Supporting Materials section. Use the Tax Research Guide found in the Supporting Materials section to research the topic you select. Be sure to cite the IRC location (be specific) and describe examples of the application of the code for two different scenarios (one where the deduction applies and one where the deduction would not apply). Add citations for all resources used in this assignment.

Specifically, you must address the following rubric criteria:

  1. Identify the research topic you want to investigate.
  2. Identify sources specifying code, section, and subsection as applicable. Include the following:
    1. 2–3 sources
  3. List parameters for deductibility for your topic. Below are examples of some parameters you may encounter.
    1. Filing status
    2. Income threshold
    3. Time or year in question
    4. Other unique parameters that apply to the circumstances
  4. Describe a scenario of qualifying for AGI adjustment.
    1. Explain why the client meets the criteria.
  5. Describe a scenario of not qualifying for AGI adjustment.
    1. Explain why the client didn’t meet the criteria.
  6. Explain tax planning implications.

What to Submit

Submit a 1- to 3-page Microsoft Word document using the Module Two Adjusted Gross Income Assignment Template. The template should use double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.

Supporting Materials

The following resources support your work on the project:

Resource: Module Two Adjusted Gross Income List

Resource: Tax Research Guide

Website: United States Code

Website: IRS.gov