TAX 665 Final Project Part I Milestone Three Guidelines and RubricHow might charitable giving impact the income, gift, or estate tax outcome for your client? Is there an optimal strategy? Recommend a
TAX 665 Final Project Part I Milestone Three Guidelines and Rubric How might charitable giving impact the income, gift, or estate tax outcome for your client? Is there an optimal strategy? Recommend a charitable donation for income, gift, or estate tax planning purposes. Which deduction (income, gift, or e state) do you recommend, and why? How does life insurance impact your estate planning strategy for the client? Consider who must pay the premiums and where the c ash will come from to pay premiums. Recommend an ethical compliance strategy based on the client’s comments about a valuation discount on the famil y limited partnership that is consistent with Internal Revenue Service (IRS) Circular 230 and the American Institute of Certified Public Accountants (AICPA) Code of Con duct. Also submit a table summarizing the estate, gift, and income tax consequences of your overall proposed estate plan over the next 24 months and h ow much of your client’s cash the strategy will consume. Specifically, the following critical elements must be address ed:
I. Life Insurance, Annuity, and Charitable Giving Strategies A. Evaluate life insurance products, annuities, and charitable giving for possible estate tax advantages in the taxable estate or in the children’s estate, while finding use of the cash flow from the sale and the real estate business. Recommend a charitable donation for income, gift, or estate tax planning purposes.
B. Recommend an ethical complia nce strategy based on the client’s comments about a valuation discount on the family limited partnership that is consistent with Internal Revenue Service (IRS) Circular 230 and the American Institute of Ce rtified Public Accountants (AICPA) Code of Conduct.
Consider the client’s cash constraints, economic impact over time, IRS Circular 230, and th e AICPA Code of Conduct.
C. Develop an additional ethical compliance strategy that addresses the client ’s estate tax and the interest and penalty that will accrue if he does not make timely payments of tax. Acknowledge appropriate tax case law and st atutes. Consider quantifying penalties and interest.
II. Tables and Calculations: Excel Documentation A. Analyze the personal income tax consequences and value over the next 24 months as a result of the ov erall proposed tax strategy. Consider justifying the strategy in comparison to an alternative transaction.
Rubric Guidelines for Submission: Your paper must be submitted as a 2 –3-page Microsoft Word document with double spacing, 12-point T imes New Roman fo nt, one- inch margins, and at least three sources cited in APA format. Include an Excel sheet explaining the income tax consequences of your overall proposed estate plan.
Critical Elements Proficient (100%) Needs Improvement (70%) Not Evident (0%) Value Life: Insurance Evaluates life insurance products, annuities, and charitable giving for possible estate tax advantages in the taxable estate or in the children’s estate, and recommends a charitable donation, while finding use of the cash flow from the sale and real estate business Evaluates life insurance products, annuities, and charitable giving for possible estate tax advantages, but detail s either do not address the use of cash flow from the sale and real estate business, or are inaccurate and do not recommend a charitable donation Does not evaluate life insurance products, annuities, and charitable giving 22 Life: Ethical Recommends an ethical compliance strategy that is consistent with IRS Circular 230 and the AICPA Code of Conduct Recommends an ethical compliance strategy, but details either lack consistency with IRS Circular 230 and the AICPA Code of Conduct, or are irrelevant Does not recommend an ethical compliance strategy 22 Life: Interest Develops an ethical compliance strategy for addressing the client’s estate tax and interest and for avoiding penalties using appropriate tax case law and statutes as justification Develops an ethical compliance strategy, but details lack either relevance or appropriate tax case law and statutes Does not include an ethical compliance strategy 22 Tables: Personal Analyzes the personal income tax consequences and costs as a result of the strategy Analyzes the personal income tax consequences and costs as a result of the strategy, but details are irrelevant or cursory Does not analyze the income tax consequences and costs as a result of the strategy 22 Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 12 Total 100%