TAX ACCOUNTING

important decision for an organization.  You may put yourself in a position that is either internal (e.g. employee) or external (e.g. public accountant, consultant, attorney), and you should identify yourself and the person to whom you write, both by name and title.

In the memo, you should:

1. Describe a significant income tax issue related to the acquisition, use, or disposition of long-term assets. This issue relate to a particular tax law or rule, a type of transaction, a type of asset, or anything else with important tax considerations.
2. Explain how it is relevant and significant to the organization. Include a calculation, illustration, or example.
3. Recommend a particular decision or action, explaining why it is better than any alternatives. It may be helpful to include calculations or measurements in your explanation.

You should use a business memo format.  Feel free to use online resources to help you with the format, such as the Purdue Online Writing Lab (linked to the course Moodle site).  The memo should be about 3-5 pages long, double spaced.  It will be evaluated based on the following criteria:

1. Communication (5 points). Writing style, clarity of descriptions, spelling, grammar
2. Accuracy (10 points). Correct presentation of tax rules and laws
3. Analysis (15 points). Significance of tax considerations to the proposed transaction, quality of reasoning, explanation, and recommendations.