accounting 405-110 research problem 1 chapter 4 prepare two tax file memorandums and client letter" "Your client was the beneficiary of an annuity...

accounting 405-110 research problem 1 chapter 4 prepare two tax file memorandums and client letter" "Your client was the beneficiary of an annuity contract purchased by her stepmother. When the stepmother died, the insurance company paid the client $400,000 and sent her a form 1099 indicating that the taxable portion was $50,000. However, according to the client, her father fraudulently convinced her that he was the intended beneficiary. She gave her father a check equal to the amount she had received from the insurance company. She did not report any of the annuity proceeds in her income tax return. She later discovered the fraud and filed a lawsuit to collect from her father. The IRS has examined your client's return and has taken the position that she must include the $50,000 in her gross income. Prepare two tax file memorandums and a client letter." "You need to cite court cases to support your conclusions if they are available as IRS rules and regulations are changed by court interpretation."Tax File Memorandum number one (1) will memorialize the facts from the client and will state the issues in a separate paragraph entitled ISSUES :.( Figure 2.6 in the text)Tax File Memorandum number two (2) will summarize your research, support your conclusion, and state your conclusion. (Figure 2.7 in the text)The Client Letter will inform the client of your decision and the major reasons why you reached your conclusion. (Figure 2.8 in the text)You must attach the brief description of each source you are citing in your conclusion.Most research problems will have more than 4 or 5 valid sources cited.Research which is too brief will most often lead to an erroneous conclusion or a conclusion which cannot be maintained during an IRS audit.All memorandums and client letters must be in well thought out and clear sentences with accurate spelling."