Research Memo Problem $($Prize$)$

Steve Spitz was given a service award for his outstanding customer

service at his workplace. The award was a watch valued at $$375.$ His

best friend is studying tax at UTEP and told him that all prizes and

awards are taxable. Steve disagrees and argues that the award was not

a cash award and therefore not taxable. Steve has come to you and asks

if he is correct, is the award taxable, does it matter if it was not a cash

award?

a$.$ Use the RIA Checkpoint Research tax library to determine

how much, if any, of Steve$$s award is taxable.

b$.$ Write a memo to communicate your results to your

supervisor using the five basic parts: $(1)$ the facts, $(2)$ issues,

$(3)$ authority list, $(4)$ conclusion, and $(5)$ analysis. The

purpose of the memo is to inform others of the research

question and it should be written in an objective manner by

discussing all relevant authorities that support as well as

conflict with the answer.