Julie really likes college football and in the past has purchased her tickets fr
ID: 2455434 • Letter: J
Question
Julie really likes college football and in the past has purchased her tickets from scalpers on game day. This year, she decided instead to join the university’s ticket program, which requires her to make a $2,000 contribution to the university for the “right” to purchase the tickets. She will then pay $400 per season ticket. She has contacted you for help in determining what she can recognize as a charitable contribution.
what is the main things i should include in a letter to client explaining and communicating the results of the research.
Explanation / Answer
Contribution to paid to university to the extent of $ 2000 can be recongnised as charitable contribution.
Tax professionals often must document and communicate their tax research. Clear written communication is important since tax planning ideas or IRS audits can cause prior tax returns to be amended or adjusted long after originally filed. The tax professional may have long since forgotten the reasons for his or her research conclusions, so it is essential that the relevant tax authorities and rationales be thoroughly documented and clearly explained. In some cases, the tax professionals who prepared the research memo may no longer be with the firm, increasing the importance of written communication that others can follow easily.
Writing a tax research memo is an art. Tax professionals do not universally use the same techniques. Generally, the more time taken to prepare a research memo, the less time necessary to review it. The method we propose is biased toward the ease of review and, thus, becomes more appropriate as the difference in compensation rates between the memos reviewer and preparer increases.
A quality tax research memo is the result of thorough research, careful interpretation of the tax authority located, application of the tax authority to the clients facts, and clear communication of the research analysis and conclusions. On this web page, we focus primarily on the communication aspects of tax research. After reviewing these communication principles, please read the fact scenario that we provide for practice, complete the research, and write a research memo following the lesson guidelines.
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