Instructions

write tw page memo for your tax partner. Your response should be in a format of a file

memorandum (see outline below). You should include citations to the Internal Revenue Code

(IRC).

The basic format for the memorandum is:

Memo header:

Facts: Summarize all relevant facts

Issues: In a question format or in whether or not sentence state:

Issue 1

Issue 2 etc.

Conclusions: Sentences stating conclusion(s), without including an in depth

analysis/explanation included in this section

Conclusion 1

Conclusion 2 etc.

Internal Revenue Code (IRC) and Other Legal Support: summarize/quote all IRC section(s) and other legal support

Analysis: an in-depth written discussion of how the IRC section(s) and other legal support applied to the Facts that resulted in the Conclusion(s) with respect to each Issue(s)

Facts

In December 2022, Ann's three-year-old niece, Susan, came to live with her after Susan's parents were killed in an auto accident. During 2023, Susan, who is a US citizen, lived with Ann for the entire year. Ann, who is single, provided more than 50 percent of Susan's support including food, clothing, and education. Susan cannot be claimed as a dependent by another person. Both Ann and Susan have Social Security numbers.

In 2023, Ann, who is a US citizen and a US Army Colonel and on active duty, and Susan moved, pursuant to an order of the US Army, from a military base in Michigan to a military base in California. Ann incurred moving expenses, which were not reimbursed by the military. She paid $1,000 to a pet relocation company to transport her dog, $2,000 to the moving company, and $500 in packing supplies.

Ann is paying $200 to the Little Lamb Daycare Center to care for Susan while Ann is working on the US Army base. Someone broke into Ann's house and stole her television. Her insurance denied her theft loss claim and the theft did not occur in a federally declared disaster area.

Your tax partner has asked you to write a file memo whether Ann can claim an earned income tax credit (EITC), a child tax credit, and a childcare tax credit for Susan and deduct her the moving expenses and the loss of her television on her 2023 US federal income tax return.

For purposes of the EITC, Ann's earned and investment income did not exceed the limits set for 2023 and she did not earn foreign income.

For purposes of determining if Ann qualifies for earned income tax credit assume her earned income and investment income does not exceed the limits to claim the credit