In this project, you will demonstrate your mastery of the following competencies: Analyze the fiscal impact of
Question:
In this project, you will demonstrate your mastery of the following competencies:
- Analyze the fiscal impact of tax laws and incentives on an organization
- Recommend optimal tax planning strategies that improve future tax consequences
Scenario
You are a tax associate with a large tax accounting firm and are compiling a comprehensive report about a new outreach initiative for SageGreen Computer Corporation. SageGreen has hired your accounting firm to assist in deciding and implementing a new energy- and environment-friendly initiative to add to the company next fiscal year. Your manager has tasked you with choosing SageGreen's new project, compiling a research report, and providing future tax suggestions.
This project will help you understand tax laws and how to communicate with potential clients. You will need to conduct outside research using scholarly sources about this potential business venture and communicate your findings and recommendations.
New Project:
A project that re-equips, expands or establishes an industrial or manufacturing facility for the production or recycling of a range of clean energy equipment.
TAX Incentive:
Part One: Memo
Analysis of the impact of tax laws and incentives as demonstrated in this current year's tax return.
Specifically, you must address the following:
- Explain therelevant tax laws and regulationsfor the client company.
- Determine the tax and financialimpact on the organizationof relevant tax laws.
- Explain the advantages and rationale of the client company conducting a thoroughcost-benefit analysis. Consider the following in your response:
- Difference between revenue earned and costs saved
- Impact of estimated costs and benefits
- Goal of the tax liability reduction
- Describe theethical considerationsof a tax preparer. Reference Circular 230 to support your argument.
Part Two: Client Letter
A reflection to the client that discusses the tax recommendations and consequences of your newly chosen energy-friendly initiative.
Specifically, you must address the following:
- Identify thetax effectsof various options that the client may choose in the next fiscal year. Consider the following in your response:
- Tax laws, regulations, and codes
- Varying business strategies
- Options for tax-planning software
- Evaluate differenttax planning strategiesto help the company's future financial goals.
- Discuss whycalculations of financial projectionsimpact the client's future goals.
- Determine appropriateincentivesto reduce the organization's future tax liability. Include the following in your response:
- Future of the company's new initiative
- Potential tax credits
5. Recommend an optimal improvementto the company's future financial goals
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik