San Diego State University Tax Research Accounting Memorandum

Ron Burgundy is a single taxpayer and lives in San Diego, CA. Ron is an on-air personality for KVWN Channel 4, the San Diego news leader. Ron prepared his 2018 income taxes, and like many relatively well-to-do Californians, found that his state income tax deduction was limited to $10,000. Ron paid state income taxes of $6,845 and property taxes on his principal residence in San Diego County of $3,207 in 2018. Ron’s total itemized deductions in 2018 were $12,756 which he deducted since the standard deduction for a single taxpayer was only $12,000 in 2018. In April 2019, Ron had his accountant prepare and file both his Federal and California state income tax returns. His California state income tax return revealed a $982 state income tax refund, which Ron had direct deposited into his bank account. Unfortunately, in May 2019, Ron’s accountant was attacked by a vicious panda bear after falling into the panda exhibit at the zoo and died a few days after from attack-related injuries. Ron is showing an amazing interest in forecasting his tax liability for 2019 and has asked you to determine what part of his California state income tax refund will be included in his 2019 taxable income.

Your Assignment:

Prepare atax research memoaddressed to the filesthat explains what Ron’s taxable income will be from the CA state income tax refund.

You will need to support your conclusion using primary sources of tax law. Your textbook is NOT primary authority. You may research ANY tax authority (primary or secondary) but your solution must be derived and supported using only primary authority.

You must use proper citation formin your memo (see Exhibit 2-9 in Chapter 2 of your textbook). The form for this communication should be professional and in the form of a tax research memo (see example on p.2-20 or 2-21, I cannot tell in the e-book which page).

This memo should be whatever length you feel is appropriate to resolve the issues. We do NOT use a bibliography or list of references in a tax research memo. You will see that citations are within the text of the document.

Your memo will be graded using a modified version of the College of Business Administration’s written communications rubric (posted in Blackboard). For this assignment, points are distributed as follows:

ACCTG 332
Summer 2018
Tax Research Case
Ron Burgundy is a single taxpayer and lives in San Diego, CA. Ron is an onair personality for KVWN Channel 4, the San Diego news leader. Ron
prepared his 2018 income taxes, and like many relatively well-to-do
Californians, found that his state income tax deduction was limited to
$10,000. Ron paid state income taxes of $6,845 and property taxes on his
principal residence in San Diego County of $3,207 in 2018. Ron’s total
itemized deductions in 2018 were $12,756 which he deducted since the
standard deduction for a single taxpayer was only $12,000 in 2018. In April
2019, Ron had his accountant prepare and file both his Federal and
California state income tax returns. His California state income tax return
revealed a $982 state income tax refund, which Ron had direct deposited
into his bank account. Unfortunately, in May 2019, Ron’s accountant was
attacked by a vicious panda bear after falling into the panda exhibit at the
zoo and died a few days after from attack-related injuries. Ron is showing
an amazing interest in forecasting his tax liability for 2019 and has asked
you to determine what part of his California state income tax refund will be
included in his 2019 taxable income.
Your Assignment:
Prepare a tax research memo addressed to the files that explains what Ron’s
taxable income will be from the CA state income tax refund.
You will need to support your conclusion using primary sources of tax law.
Your textbook is NOT primary authority. You may research ANY tax
authority (primary or secondary) but your solution must be derived and
supported using only primary authority.
You must use proper citation form in your memo (see Exhibit 2-9 in
Chapter 2 of your textbook). The form for this communication should be
professional and in the form of a tax research memo (see example on p.2-20
or 2-21, I cannot tell in the e-book which page).
This memo should be whatever length you feel is appropriate to resolve the
issues. We do NOT use a bibliography or list of references in a tax research
memo. You will see that citations are within the text of the document.
Your memo will be graded using a modified version of the College of
Business Administration’s written communications rubric (posted in
Blackboard). For this assignment, points are distributed as follows:
Content
Organization
Audience
Style
Mechanics
References
Total
15
3
3
3
3
3
30
Content will be broken down into 3 components: (1) Facts, (2) Analysis and
(3) Conclusion.
Component
Content Facts
Exceeds Expectations
All pertinent facts have been
described in a clear and
concise manner.
Distinguishing features of the
fact pattern are highlighted.
Content Analysis
All necessary references to
authority have been made.
Authority which could apply
but does not has been
distinguished from that which
does. The analysis follows a
logical pattern of application
to the facts and supports
author’s conclusion.
Conclusion is clear and
integrates with facts and
analysis. More than a simple
sentence stating conclusion.
Cause and effect relationship
between facts and analysis are
made. All open issues are
responded to. Conclusion
drawn is correct.
ContentConclusion
Unacceptable
Critical facts omitted.
Unable to apply or
distinguish from other
possible fact patterns or
facts are merely copied
from case.
Analysis is deficient in
reference to authoritative
tax law. Analysis lacks
cohesion and does not
support conclusion.
Conclusion is unclear and
unsupported by analysis.
Reader is not able to form
educated opinion on tax
treatment of facts
pattern.
You are required to individually prepare this document (no assistance from
your classmates). Please upload your memo into Turnitin in
Blackboard by the due date at 10:00pm.
Content
Organization
Audience
Style
Mechanics
Referencing
Below Expectations
Meets Expectations
Does not adequately cover the assigned
task. The primary thesis may not be clear
or if it is, little topic development is
evident. Assertions made in the writing
are either weakly supported or no
support is offered.
Paper lacks logical sequence hence
causing format to interfere with
readability. Does not use proper
paragraphing. Topic sentences do not
lead to rest of paragraph or are missing
altogether.
Writer is internally focused rather than
focused on the reader. No clear
awareness or understanding of the
audience is evident. Writer may appear
discourteous to the reader.
Overuse of simple sentences. May
misuse words or idioms. May include
slang. Wordy rather than concise. Writing
shows lack of sophistication or variety in
vocabulary. Awkward. Little or no use of
business terms.
Significant errors in word usage,
sentence structure (run-ons, fragments),
spelling, punctuation, and capitalization.
Errors undermine credibility of content
and readability.
References (if called for) are missing or
do not use correct referencing style.
The assigned task is covered sufficiently. The
primary thesis is clear but there is some room
for further development of the topic. Support is
offered for assertions that are made but that
support could be stronger, more compelling or
more inclusive of all issues.
Paper follows logical sequence with identifiable
beginning, development, and conclusion.
Generally proper use of paragraph structure
and topic sentences. Organization and/or
headings help the reader to follow and find
information.
Writer acknowledges the reader and displays
some thought about the nature of the
audience. Reader is treated politely and
positively. No evidence of inappropriate
attitude.
Sentences vary in length and style. Strong
action verbs are used. Occasionally uses jargon
or clichés. Vocabulary and word usage generally
is correct and shows some variety. Uses
business terms appropriately.
The assigned task is thoroughly covered and
completed. The primary thesis is clear and fully
developed. Assertions made throughout the
writing are compelling and clearly supported.
Exceeds Expectations
Relatively free of errors in word usage,
sentence structure (run-ons, fragments),
spelling, punctuation, and capitalization.
Mechanics do not detract from credibility of the
content.
Generally correct referencing (if called for)
using APA or MLA style.
No errors in word usage, sentence structure
(run-ons, fragments), spelling, punctuation, and
capitalization. Strong mechanics help to establish
credibility.
Paper flows well with appropriate beginning,
development, and conclusion. Paragraph
structure contributes to flow and transitions.
Organization and/or headings help the reader to
understand and remember information.
Writer clearly focuses writing to the audience,
and displays empathy for the reader. Goodwill is
created through consideration of the reader’s
needs. Message tailored directly for the reader.
Demonstrates a sophisticated grasp of the
language in terms of both sentence structure
and vocabulary. Writes fluidly and concisely.
Includes appropriate business terms.
References (if called for) are consistently correct
using APA or MLA style. No missing citations.