TAX 660 Final Project Guidelines and Rubric.
Working as an accounting associate in a financial organization requires the ability to apply tax and accounting knowledge in unique ways. Being able to identify issues and communicate them effectively to team members and clients is essential for any financial career working in a privately held enterprise or working with privately held clients. The final project for this course involves researching relevant tax code and creating of a set of memorandums to advise a hypothetical group of individuals; you will organize, operate, and ultimately restructure a merchandising business.
In the final project, you will demonstrate your ability to communicate your effective investment and business strategy recommendations to your client. Your proposed strategy could save the client millions of dollars over time, so it is imperative that you utilize your tax research skills and maintain compliance with all governing rules and regulations.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Four, Six, and Seven. The comprehensive set of memorandums will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
TAX-660-01: Evaluate tax consequences related to various elements of business formation for advising stakeholders on the most advantageous organizational structure
TAX-660-02: Determine appropriate tax strategies associated with operating a multijurisdictional business for advising stakeholders on merchandising methodologies
TAX-660-03: Assess the tax costs and benefits associated with restructuring a business to recommend appropriate tax strategies based on relevant tax law
TAX-660-04: Propose effective strategies in estate planning for maximizing the tax benefit of stakeholders TAX-660-05: Communicate key considerations to stakeholders for use in making sound tax-oriented business decisions based on chosen strategy.
You will assume the role of tax advisor for a company made up of four stakeholders. In this case study, each stakeholder brings different assets and tax situations to the table. You must design the appropriate business structure for the company as a startup, advise tax solutions when the business is in operation, and counsel a tax strategy for each stakeholder during a restructuring. Your advice will be communicated in a series of memorandums for each scenario. Read the full narrative of the scenarios, which will be addressed separately in the milestones.
Specifically, the following critical elements must be addressed:
I. Establishing the Business:
A. Explain the general tax advantages and disadvantages of each form of business. Include a discussion of how each business form addresses owner concerns related to personal liability, return on investment, and tax costs related to compensation. [TAX-660-01]
B. Justify your choice of form of business entity for this venture based on stakeholder requirements for maximizing tax outcomes of business owners. Determine tax implications for your investors related to various investment options, including calculating the tax benefits/costs and identifying relevant tax law, code, and regulations. [TAX-660-01]
C. Make a recommendation for the capital structure of the business, including 1) the value assigned to the organizers’ equity accounts versus debt payable to the organizers and 2) each of the organizers’ cost basis in Tai-Ga. [TAX-660-01]
D. Compose a memorandum to stakeholders, including an executive summary of your recommendation and a detailed support section. [TAX-660-05]
II. Operating the Business:
A. Determine the appropriate inventory cost flow assumption for a merchandising business. [TAX-660-02]
B. Determine the appropriate overall business accounting method (cash, accrual, hybrid). [TAX-660-02]
C. Make a recommendation for the appropriate depreciation method and asset lives, including whether or not to make use of the availability of bonus depreciation under §168(k)
D. Determine the appropriate fiscal year end for a recommended business entity. [TAX-660-02]
E. Explain the tax implications related to multijurisdictional operations of a business, including interstate and international considerations. [TAX660-02]
F. Compose a memorandum to stakeholders, including an executive summary of your recommendation and a detailed support section. [TAX-660-05]
III. Restructuring the Business.
A. Determine tax consequences of the different distribution/contribution options in a business restructuring:
1. Identify relevant tax law for restructuring the business. [TAX-660-03]
2. Calculate the tax costs of a restructuring plan. [TAX-660-03]
3. Calculate the tax benefits of a restructuring plan. [TAX-660-03]
B. Compose a memorandum to stakeholders outlining restructuring recommendations, including an executive summary of your recommendation and a detailed support section based on research and analysis of relevant information. [TAX-660-05]
IV. Estate Planning.
A. Analyze a client scenario to determine appropriate factors in estate planning for maximizing the tax benefit of the stakeholder. [TAX-660-04]
B. Formulate a recommendation to the client based on research of IRS and other resources. [TAX-660-04]
C. Interpret research of IRS and other resources to determine relevance to all other stakeholder scenarios. [TAX-660-04]
D. Determine the appropriate information to advise each of the stakeholders, then communicate the impact of research results by composing a brief recommendation memorandum to the stakeholders. [TAX-660-05]
Milestone One: Establishing the Business In Module Four, you will submit a recommendation on the appropriate form for the new business, called Tai-Ga. This milestone will be graded with the Milestone One Rubric.
Milestone Two: Operating the Business In Module Six, you will submit a professional memorandum that provides recommendations for key operating decisions. This milestone will be graded with the Milestone Two Rubric.
Milestone Three: Restructuring the Business In Module Seven, you will consider the tax and nontax consequences of transactions involving stock or ownership as you advise Tai-Ga on restructuring the entity five years after formation of the business. This milestone will be graded with the Milestone Three Rubric.
Final Submission In Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course, and include the new material from section IV, Estate Planning. This submission will be graded with the Final Project Rubric.
Guidelines for Submission: Your final paper should be a 12- to 15-page Microsoft Word document (excluding the cover page and reference pages), with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format.
Please see attached submitted milestones, scenario, and other supporting documents..
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