Accounting Essay Assignment: Denver Manufacturing Company
Length: 5 pages.
Megan (chair of the board of directors) and Matthew (company president) each own 50% of Denver Manufacturing Company. Denver Manufacturing Company is experiencing difficult financial times. In fact, last month, Megan used $550,000 of payroll taxes and income withheld from employee paychecks to pay a creditor that threatened to cut off supplies.
Megan willfully used these government funds for the operations of the business, but it was not enough. The company missed the next two payrolls, and today, other creditors took action to shut down Denver Manufacturing Company altogether.
How much will the IRS assess in taxes and penalties in this matter and from whom? How can you, as a tax professional, best offer service to Madison, Martin, and Washington? Address these matters in a memo for the tax research file.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
References
• Chapters 23 & 26 in South-Western Federal Taxation 2019
• Department of the Treasury. (2019). IRS organization and top officials.
• Exemption from Tax on Corporations, Certain Trusts, etc., 26 U.S.
• Unrelated Business Taxable Income, 26 U.S.
• Erdody, L. (2018). Not-for-profit organizations brace for impact of tax bill: Much-higher standard deduction may discourage philanthropy. Indianapolis Business Journal, 38(48), 1,30.
• Murphy, M. (2016). Business practices that not-for-profits can't afford to overlook. Journal of Accountancy.
• Unrelated business taxable income, 26 U.S. Code § 512(a) (n.d.). Retrieved from Thomson Reuters Checkpoint database.