ACC 700 Milestone Three Guidelines and Rubric\tThe third milestone is a rough draft of the third artifact for your professional portfolio, a tax memo. The tax memo is broken up into two parts: Tax Memo I is a\tpersonal income tax preparation and Tax Memo II is a corporate tax memo. This will be graded using the rubric at the end of this document and is an opportunity\tfor you to organize your thoughts and receive feedback from your instructor for the final submission. Note that the submission guidelines for this milestone are\tless demanding than those for the final submission. Once you have submitted this milestone and received feedback from your instructor, it is up to you to\tincorporate this feedback and complete the artifact by meeting the submission requirements found in the Final Project Guidelines and Rubric document.\t\tClient Three “\ufffd Ms. Emma Shire (Tax Memo)\tMs. Emma Shire is a client at S.N.H.U., LLC. Your task is to develop a comprehensive, professional tax memo and appendix for her by analyzing business and\tindividual tax situations. Ms. Shire has questions and concerns about her personal income taxes, as well as taxes as they relate to her role in a partnership with\tMarlene Anderson. She also works at Clifford Co., a large organization set up as a corporation, and has questions about their tax preparation. You will work with\tMs. Emma Shire to provide her with guidance on her questions related to personal, partnership, and corporate tax situations. You will need to apply income tax\tregulations in solving problems and recommending courses of action that will comply with regulations and, at the same time, result in the best economic solution\tfor Ms. Emma Shire.\t\tArtifact Three: Tax Memo I Information for Personal Income Tax Preparation\tMs. Shire has provided you with the following information to prepare her personal income tax return for 2014.\tEmma Shire lives at 5258 Mountain Skies Road, College Park, MD 20742. She is a human resource manager at Clifford Company, 896 Western Avenue, College\tPark, MD 20742 (employer identification number XX-1111111). She is also a 50\/50 partner in a local clothing boutique. Ms. Shire is divorced and has two small\tchildren, Kelly Shire (DOB 2\/3\/2012) and Jordan Shire (DOB 5\/19\/2006).\tMs. Shire was born on January 14, 1976, and her Social Security number is 123-45-6789. She does not want to contribute $3 to the Presidential Election\tCampaign Fund.\t\tThe following information is shown on Ms. Shire’s 2014 Wage and Tax Statement (Form W”\ufffd2):\tLine\t1\t2\t3\t4\t5\t6\t15\t16\t17\t\tDescription\tWages, tips, other compensation\tFederal income tax withheld\tSocial Security wages\tSocial Security tax withheld\tMedicare wages and tips\tMedicare tax withheld\tState: Maryland\tState wages, tips, etc.\tState income tax withheld\t\tAmount\t$65,000.00\t10,500.00\t65,000.00\t4,030.00\t65,000.00\t942.50\t65,000.00\t1,650.00\t\tAdditional Information:\tReceived interest of $1,750 from Maryland Federal Savings and Loan Association and $250 from Maryland State Bank. Each financial institution reported\tthe interest income on a Form 1099″\ufffdINT\tReceived qualified dividends of $600 from Blue Corporation, $750 from Green Corporation, and $368 from Orange Corporation. Each corporation\treported dividend payments on a Form 1099″\ufffdDIV.\tReceived child support of $15,000 during the year.\tReceived a $900 income tax refund from the state of Maryland on April 29, 2014.\tReported total itemized deductions of $10,200 on 2013 federal income tax return, which included $2,200 of state income tax withheld by her employer.\tReceived K-1 indicating her share of the clothing boutique’s ordinary business income (loss) “\ufffd Line 1 is $23,580. No guaranteed payments were made or\tdividends were received by the partnership.\tAcquired 100 shares of Ace Corporation common stock for $30 a share on January 12, 2014. She sold the stock on December 19 for $55 a share.\tPaid $1,300 for prescription medicines and $1,875 in physician and hospital bills. Medical insurance premiums were paid by her employer.\tPaid real property taxes of $1,675 on her personal residence and interest on her home mortgage was $4,285, and interest paid to credit card companies\ttotaled $360.\tContributed $25 each week to her church and $15 each week to United Way.\tPaid $1,500 in estimated federal income taxes throughout the year.\t\tArtifact Three: Tax Memo II Corporation Issue\tClifford Company has encountered the following issue:\tThe company would like to make a property distribution (dividend) of the three machines that it uses in its business. It no longer needs two of these machines.\tAll three machines have a fair market value of $20,000 each. The basis of each machine is as follows: Machine A, $27,000; Machine B, $20,000; and Machine C,\t$12,000. The corporation has asked you for advice. What do you recommend?\tYour final portfolio artifact is the comprehensive, professional tax memo and appendix that you develop for Ms. Emma Shire, another client at S.N.H.U., LLC. As\tyou did with the previous two artifacts, make sure to incorporate the feedback that you receive from your instructor and peers.\tMemo: You will justify recommendations and explain potential issues and future decisions relating to Ms. Shire’s tax situations. Given that Ms. Shire is not well\tversed in accounting, make sure that your memo addresses her concerns in language that she can understand.\tAddress Ms. Shire’s questions pertaining to personal tax planning. Based on her given information, what actions can Ms. Shire take throughout the year\tto effectively reduce her tax liability? Provide specific recommendations, defend them with tax regulations, and explain the tax consequences or savings\tin conceptual and dollar value terms.\tAddress Ms. Shire’s questions pertaining to her partnership income. Based on the given information, what actions can Ms. Shire take throughout the\tyear to effectively reduce her tax liability from the partnership? What are the tax consequences to Ms. Shire if she and her partner choose to change\ttheir business to a corporation? Provide specific recommendations, defend them with tax regulations, and explain the tax consequences or savings in\tconceptual and dollar value terms.\tAddress Ms. Shire’s questions pertaining to Clifford Co.’s tax preparation. Provide specific recommendations, defend them with tax regulations, and\texplain the tax consequences or savings in conceptual and dollar value terms.\t\tSupporting documents should include, but are not limited to: a completed tax return, tax schedules, and tax forms.\tGuidelines for Submission: Tax Memo I should be submitted as a one- to two-paragraph summary in a Microsoft Word document with double spacing, 12-point\tTimes New Roman font, one-inch margins, and at least two sources cited in APA format. Round all answers up to the nearest dollar value in any calculations.\tTax Memo II should be submitted as a one- to two-paragraph summary in a Microsoft Word document with double spacing, 12-point Times New Roman font,\tone-inch margins, and at least two sources cited in APA format.\tNote that this milestone is a rough draft and the submission guidelines are different for the final draft of the memos. Tax Memo I will be two to three pages in\tlength and Tax Memo II will be one to two pages in length with at least three sources. Refer to the submission guidelines in the Final Project Guidelines and\tRubric document.\t\tInstructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,\treview these instructions.\tCritical Elements\tPersonal Tax\tPlanning\t\tPartnership Income\t\tClifford Co.’s Tax\tPreparation\t\tArticulation of\tResponse\t\tProficient (100%)\tIdentifies specific actions to reduce Ms. Shire’s tax liability;\tprovides recommendations supported with tax regulations\twith an explanation of the consequences or savings in\tconceptual terms and dollar values\tIdentifies actions for Ms. Shire to reduce her tax liability\tfrom her partnership, includes tax consequences if Ms. Shire\tand her partner change to a corporation, and provides\trecommendations supported with tax regulations with an\texplanation of the consequences or savings in conceptual\tterms and dollar values\tProvides recommendations pertaining to Clifford Co.’s tax\tpreparation supported with tax regulations and an\texplanation of the consequences or savings in conceptual\tterms and dollar values\tSubmission has no major errors related to citations,\tgrammar, spelling, syntax, or organization\t\tNot Proficient (0%)\tDoes not identify specific actions to reduce Ms. Shire’s tax\tliability; does not provide recommendations supported with\ttax regulations or an explanation of the consequences or\tsavings in conceptual terms and dollar values\tDoes not identify actions for Ms. Shire to reduce her tax\tliability from her partnership, include tax consequences if\tMs. Shire and her partner change to a corporation, provide\trecommendations supported with tax regulations, or provide\tan explanation of the consequences or savings in conceptual\tterms and dollar values\tDoes not provide recommendations pertaining to Clifford\tCo.’s tax preparation supported with tax regulations or an\texplanation of the consequences or savings in conceptual\tterms and dollar values\tSubmission has critical errors related to citations, grammar,\tspelling, syntax, or organization that prevent understanding\tof ideas\tEarned Total\t\tValue\t30\t\t30\t\t30\t\t10\t\t100%<\/p>\n","protected":false},"excerpt":{"rendered":"
ACC 700 Milestone Three Guidelines and Rubric The third milestone is a rough draft of the third artifact for your professional portfolio, a tax memo. The tax memo is broken up into two parts: Tax Memo I is a personal Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200685","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200685"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200685\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}