07 Jan Tax File Memorandum

Tax File Memorandum

Using CCH IntelliConnect exclusively and the Tax File Memorandum Template from Unit 1, develop a tax file memorandum for a client based on the information found in the case below. A completed example of a file memo can be found in Exhibit 11-5 on pages 387–388. The file memo is located in the first portion of the exhibit, followed by a client letter. All submissions should follow the file memo format exactly (a client letter is not needed unless specifically required). Develop the file memo using the template, but remember to save the file with your last name before you submit.

Click here to access the CCH database – (provided through the Library — http://library.kaplan.edu/omnitax)

Research Case

Lynn Jones lives in Maine with her son, Mike, and husband, George. Mike has Lou Gehrig’s disease. Mike’s physician encourages Lynn to go to a conference at the Mayo Clinic in New Jersey for caregivers of persons with Lou Gehrig’s disease so she can learn how to better take care of Mike. Lynn takes the advice and flies to New Jersey. Besides the cost of the plane ticket, Lynn incurs the following types of expenses: meals, lodging, phone calls home, dry cleaning (she dumped her taco salad on her lap at lunch), and conference registration fees. The leading speaker at the conference suggested that caregivers take their patients to destinations in warm climates to improve their state of mind and general condition. When Lynn returns home, she arranges a 2-month trip (January and February) to the Cayman Islands for Mike and herself. One week after they arrived in the Cayman Islands, Mike’s father, George, arrives and stays for a couple of weeks. Advise Lynn as to whether any of these expenses are deductible as medical expenses.

Tax Research Memo

Sample Format

 

Federal Tax Research

 

 

 

 

Your Firm

Your Town and State

Date

 

Relevant Facts

 

 

 

 

 

Specific Issues

 

 

 

 

 

Conclusions

 

 

 

 

Support

 

 

 

 

 

 

 

 

Actions to Be Taken

 

________  Discuss with client.  Date discussed ________

 

________  Prepare a memo or letter to the client.

 

________  Explore other fact situations.

 

________  Other action. Describe:___________________________

 

_______________________________________________________

 

 

 

Preparer ________             Reviewer ________