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TAX 650 Milestone Three Guidelines and Rubric In this short paper, you will recommend a type of business entity for the client describ ed in the final project . In explaining your recommendation, discuss liability issues, tax effects, and the economic impac t on the client ’s personal returns. Justify your recommendation regarding whether the client’s daughter should have an ownership interest in the new company with details related to the transaction. Specifically , the following critical elements must be add ressed: A. Recommend a type of business entity for the client to consider based on your tax research. Consider justifying your recommendation using the code and regulations that relate to the busines s entity. B. Justify whether or not the client should choose a business entity that has limited liability protection . Be sure to include possible future liability issues based on the potential economic impact and appropriate I nternal Revenue C ode and Treasury regulati ons. C. Describe the tax effect on the recommended business entity and the impact it will have on the client’s personal tax return. Consider addressing how the business entity affects the completion of the 1040 tax form . D. Evaluate the economic impact on the client’s personal returns based on the recommended entity. Justify why the client would not choose the other business entities by informing the client of the differences. E. Justify your recommendation regarding the client’s daughter having an ownership interest . Provide details supporting the recommendation taking into considera tion the jargon and mechanics of the transaction. Guidelines for Submission: Your paper must be submitted as a 2–3-page Microsoft Word document with double spacing, 12 -point Times New Roman font, one - inch margins, and at least three sources cited in APA format. Instructor Feedback : This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more in formation, review these instructions . Critical Elements Proficient (100 %) Needs Improvement (75% ) Not Evident (0% ) Value Business Entity Recommends a type of bus i nes s enti ty for the cl i ent to cons i de r tha t i s ba s ed on ta x res ea r ch Recommends a type of bus i nes s enti ty but ei ther the ci ted I nterna l Revenue Code a nd Trea s ury regul a ti ons a re i na ccurate or deta i l s a re curs ory Does not reco mmend a type of bus i nes s enti ty 20 Limited Liability Protection Jus ti fi es whether or not the cl i ent s houl d choos e a bu s i nes s enti ty tha t ha s l i mi ted l i a bi lity protecti on a nd i ncl udes pos s i ble future l i a bi lity i s sues cons isten t wi th Interna l Revenue code a nd Trea s ury regul a ti ons Jus ti fi es whether or not to choos e a bus i nes s enti ty tha t ha s l i mi ted l i a bi lity protecti on but does not i ncl ude pos s i ble future l i a bility i s s ues , pos s ible future l i a bili ty i s s ues a re not cons i s tent wi th Interna l Revenue Code a nd Trea s ury regul a ti ons , or deta i l s are ei ther i na ccura te or curs ory Does not j us ti fy whether or not to choos e a bus i nes s enti ty tha t h a s l i mi ted l i a bi lity protecti on 20 Tax Effect Des cri bes the ta x effect on the recommended bus i nes s enti ty a nd the i mpa ct on th e cl i ent’s pers ona l ta x return Des cri bes the ta x effect on the recommended bus i nes s enti ty a nd the i mpa ct on the cl i ent’s pers ona l ta x return, but deta i l s a re i rr el eva nt or curs ory Does not des cri be the ta x effect on the recommended bus i nes s enti ty a nd the i mpa ct on t he cl i ent’s pers ona l ta x return 20 Economic Impact:

Personal Returns Eva l ua tes the economi c i mpa ct on the cl i ent’s pers ona l returns ba s ed on the reco mmended enti ty a nd j us ti fi es res pons e by i ncl uding i nfor ma ti on a bout the other enti ti es Eva l ua tes the economi c i mpa ct of cl i ent’s pers ona l returns but does not provi de j us ti fi cati on or deta i l s l a ck rel eva nce or a re curs ory Does not eva l ua te the economi c im pa ct of cl i ent’s pers ona l returns 15 Ownership Interest Jus ti fi es recommenda ti on rega rdi ng the cl i ent’s da ughter ha vi ng a n owners hi p i nteres t us i ng deta i l s s upporti ng the recommenda ti on Jus ti fi es recommenda ti on rega rdi ng cl i ent’s da ughter ha vi ng a n owners hi p i nteres t but deta i l s ei ther l a ck rel eva nce or a re curs ory Does not j us ti fy the recommenda ti on rega rdi ng cl i ent’s da ughter ha vi ng owners hi p i nteres t 15 Articulation of Response Submi s s i on ha s no ma j or errors rel a ted to ci ta ti ons , gra mma r, spel l i ng, s y nta x, or orga ni zati on Submi s s i on ha s ma j or errors rel a ted to ci ta ti ons , gra mma r, s pel l i ng, s ynta x, or orga ni zati on tha t nega ti vel y i mpa ct rea da bi l ity a nd a rti cul a tion of ma i n i dea s Submi s s i on ha s criti ca l errors rel a ted to ci ta ti ons , gra mma r, s pel l i ng, s yn ta x, or orga ni zati on tha t prevent unders ta ndi ng of i dea s 10 Earned Total 100%