Attached is your first Tax Research Assignment. This project represents 5 percent of your course grade. Your grade on the project will be based on the effectiveness of your tax research as well as the quality of your communication to your client of the results of your research. Spelling, punctuation, grammar, and organization of your memorandum communicating your results will factor into your grade, as will proper citation and description of any authorities your research has identified. Note that research conclusions should be supported by reference to and discussion of primary authorities. See https://www.irs.gov/irm/part4/irm_04-010-007.html for the citation format for statutory, administrative, and judicial primary authorities. You should submit your memorandum in your assignment folder in pdf format. Please see the Sample Tax Research Assignment with the Sample Tax Research Memo as an exemplar of how to communicate tax research findings. These documents can be found under Tax Research in your Course Table of Contents. In addition, please review the sample Tax Research Problem and Solution and the Tax Research Guidance documents for tips on finding relevant primary authorities to support your research memo conclusions. Please post any questions you may have in the Tax Research Process Discussion Conference. If you have a personal question you can also e-mail me.
Benjamin Jones is a new staff accountant for Local Firm CPAs, LLC. Benjamin is taking a CPA exam review course to help him prepare for the exam. Benjamin is not reimbursed for the cost of the course ($2,500), but the firm expects him to take and pass the CPA exam.Realizing that you have recently been hired by another local firm that specializes in tax accounting, Benjamin requests your advice on whether he may deduct the cost of the CPA Review Course on his federal income tax return for the year.Research the tax law and write Benjamin a brief memo of no more than two pages, in which you communicate the results of your research. Use the format for communicating research findings discussed in Communication of Tax Research Results under Tax Research in Course Content for your memorandum.Identify relevant statutory, regulatory, and judicial authorities and discuss how these authorities affect your conclusion concerning the deductibility of Benjamin's CPA exam review course expense.