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TAX 660 Final Project Guidelines and Rubric
Overview
Working as an accounting associate in a financial organization requires the ability to apply tax and accounting knowledge in unique ways. Being able to identify
issues and communicate them effectively to team members and clients is essential for any financial career working in a privately held enterprise or working with
privately held clients. The final project for this course involves researching relevant tax code and creating of a set of memorandums to advise a hypothetical
group of individuals; you will organize, operate, and ultimately restructure a merchandising business.
In the final project, you will demonstrate your ability to communicate your effective investment and business strategy recommendations to your client. Your
proposed strategy could save the client millions of dollars over time, so it is imperative that you utilize your tax research skills and maintain compliance with all
governing rules and regulations.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Four, Six, and Seven. The comprehensive set of memorandums will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
TAX-660-01: Evaluate tax consequences related to various elements of business formation for advising stakeholders on the most advantageous
organizational structure
TAX-660-02: Determine appropriate tax strategies associated with operating a multijurisdictional business for advising stakeholders on merchandising
methodologies
TAX-660-03: Assess the tax costs and benefits associated with restructuring a business to recommend appropriate tax strategies based on relevant tax
law
TAX-660-04: Propose effective strategies in estate planning for maximizing the tax benefit of stakeholders
TAX-660-05: Communicate key considerations to stakeholders for use in making sound tax-oriented business decisions based on chosen strategy
Prompt
You will assume the role of tax advisor for a company made up of four stakeholders. In this case study, each stakeholder brings different assets and tax situations
to the table. You must design the appropriate business structure for the company as a startup, advise tax solutions when the business is in operation, and
counsel a tax strategy for each stakeholder during a restructuring. Your advice will be communicated in a series of memorandums for each scenario. Read the
full narrative of the scenarios, which will be addressed separately in the milestones.
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Specifically, the following critical elements must be addressed:
I. Establishing the Business
A. Explain the general tax advantages and disadvantages of each form of business. Include a discussion of how each business form addresses
owner concerns related to personal liability, return on investment, and tax costs related to compensation. [TAX-660-01]
B. Justify your choice of form of business entity for this venture based on stakeholder requirements for maximizing tax outcomes of business
owners. Determine tax implications for your investors related to various investment options, including calculating the tax benefits/costs and
identifying relevant tax law, code, and regulations. [TAX-660-01]
C. Make a recommendation for the capital structure of the business, including 1) the value assigned to the organizers’ equity accounts versus debt
payable to the organizers and 2) each of the organizers’ cost basis in Tai-Ga. [TAX-660-01]
D. Compose a memorandum to stakeholders, including an executive summary of your recommendation and a detailed support section. [TAX-660-05]
II. Operating the Business
A. Determine the appropriate inventory cost flow assumption for a merchandising business. [TAX-660-02]
B. Determine the appropriate overall business accounting method (cash, accrual, hybrid). [TAX-660-02]
C. Make a recommendation for the appropriate depreciation method and asset lives, including whether or not to make use of the availability of
bonus depreciation under §168(k)
D. Determine the appropriate fiscal year end for a recommended business entity. [TAX-660-02]
E. Explain the tax implications related to multijurisdictional operations of a business, including interstate and international considerations. [TAX660-02]
F. Compose a memorandum to stakeholders, including an executive summary of your recommendation and a detailed support section. [TAX-660-05]
III. Restructuring the Business
A. Determine tax consequences of the different distribution/contribution options in a business restructuring:
1. Identify relevant tax law for restructuring the business. [TAX-660-03]
2. Calculate the tax costs of a restructuring plan. [TAX-660-03]
3. Calculate the tax benefits of a restructuring plan. [TAX-660-03]
B. Compose a memorandum to stakeholders outlining restructuring recommendations, including an executive summary of your recommendation
and a detailed support section based on research and analysis of relevant information. [TAX-660-05]
IV. Estate Planning
A. Analyze a client scenario to determine appropriate factors in estate planning for maximizing the tax benefit of the stakeholder. [TAX-660-04]
B. Formulate a recommendation to the client based on research of IRS and other resources. [TAX-660-04]
C. Interpret research of IRS and other resources to determine relevance to all other stakeholder scenarios. [TAX-660-04]
D. Determine the appropriate information to advise each of the stakeholders, then communicate the impact of research results by composing a
brief recommendation memorandum to the stakeholders. [TAX-660-05]
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Milestones Overview
Milestone One: Establishing the Business
In Module Four, you will submit a recommendation on the appropriate form for the new business, called Tai-Ga. This milestone will be graded with the
Milestone One Rubric.
Milestone Two: Operating the Business
In Module Six, you will submit a professional memorandum that provides recommendations for key operating decisions. This milestone will be graded with the
Milestone Two Rubric.
Milestone Three: Restructuring the Business
In Module Seven, you will consider the tax and nontax consequences of transactions involving stock or ownership as you advise Tai-Ga on restructuring the
entity five years after formation of the business. This milestone will be graded with the Milestone Three Rubric.
Final Submission
In Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should
reflect the incorporation of feedback gained throughout the course, and include the new material from section IV, Estate Planning. This submission will be
graded with the Final Project Rubric.
Deliverables
Milestone Deliverable Module Due Grading
One Establishing the Business Four Graded separately; Milestone One Rubric
Two Operating the Business Six Graded separately; Milestone Two Rubric
Three Restructuring the Business Seven Graded separately; Milestone Three Rubric
Final Submission Nine Graded separately; Final Project Rubric
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Final Project Rubric
Guidelines for Submission: Your final paper should be a 12- to 15-page Microsoft Word document (excluding the cover page and reference pages), with double
spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format.
Critical Element Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Establishing the
Business: Tax
Advantages and
Disadvantages
[TAX-660-01]
Meets “Proficient” criteria and
demonstrates sophisticated
awareness of the business
forms and tax relationships
Explains the general tax
advantages and disadvantages
of each form of business
Explains the general tax
advantages and disadvantages
of each form of business, but
explanation is cursory or
contains inaccuracies
Does not explain the general
tax advantages and
disadvantages of each form of
business
5
Establishing the
Business: Form of
Business Entity
[TAX-660-01]
Meets “Proficient” criteria and
demonstrates in-depth
knowledge of business entity
choice ramifications
Justifies choice of form of
business entity based on
stakeholder requirements and
tax implications for investors
related to various investment
options, including calculating
the tax benefits/costs and
identifying relevant tax law,
code, and regulations
Justifies choice of form of
business entity based on
stakeholder requirements and
tax implications for investors,
but explanation is cursory,
contains inaccuracies, or is
missing key elements
Does not justify choice of form
of business entity based on
stakeholder requirements and
tax implications for investors
6
Establishing the
Business: Capital
Structure
[TAX-660-01]
Meets “Proficient” criteria and
demonstrates sophisticated
awareness of the impact of
capital structure on the
business
Makes an appropriate
recommendation for capital
structure of the business,
including value assigned to the
organizers’ equity accounts
versus debt payable to the
organizers and each of the
organizers’ cost basis in Tai-Ga
Makes a recommendation for
capital structure of the
business, but the
recommendation is
inappropriate, contains
inaccuracies, or is missing key
elements
Does not make a
recommendation for capital
structure of the business
5
Establishing the
Business: Memorandum
to Stakeholders
[TAX-660-05]
Meets “Proficient” criteria and
shows keen insight into the
appropriate composition of
each section of the memo
Composes a memorandum to
stakeholders, including an
executive summary of
recommendation and a detailed
support section
Composes a memorandum to
stakeholders, but memo is
cursory, contains inaccuracies,
or is missing key elements
Does not compose a
memorandum to stakeholders
5
Operating the Business:
Inventory Cost Flow
[TAX-660-02]
Meets “Proficient” criteria and
demonstrates in-depth
knowledge of inventory cost
flow calculations
Determines appropriate
inventory cost flow assumption
for a merchandising business
Determines appropriate
inventory cost flow assumption
for a merchandising business,
but assumption contains
inaccuracies or is missing key
elements
Does not determine
appropriate inventory cost flow
assumption for a merchandising
business
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Operating the Business:
Business Accounting
Method
[TAX-660-02]
Meets “Proficient” criteria and
demonstrates in-depth
knowledge of the business
accounting method
Determines appropriate overall
business accounting method
Determines appropriate overall
business accounting method,
but explanation contains
inaccuracies or is missing key
elements
Does not determine
appropriate overall business
accounting method
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Operating the Business:
Depreciation Method
and Asset Lives
[TAX-660-02]
Meets “Proficient” criteria and
demonstrates in-depth
knowledge of the depreciation
method and asset lives
Determines appropriate
depreciation method and asset
lives, including consideration of
Section 168(k)
Determines appropriate
depreciation method and asset
lives, but explanation contains
inaccuracies or is missing key
elements
Does not determine
appropriate depreciation
method and asset lives
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Operating the Business:
Fiscal Year End
[TAX-660-02]
Meets “Proficient” criteria and
demonstrates keen insight into
the fiscal year end
determination
Determines appropriate fiscal
year end for recommended
business entity
Determines appropriate fiscal
year end for recommended
business entity, but explanation
contains inaccuracies
Does not determine
appropriate fiscal year end for
recommended business entity
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Operating the Business:
Multijurisdictional
Operations
[TAX-660-02]
Meets “Proficient” criteria and
explanation shows a complex
grasp of tax implications related
to multijurisdictional
operations
Explains the tax implications
related to multijurisdictional
operations of a business,
including interstate and
international
Explains the tax implications
related to multijurisdictional
operations of a business, but
explanation contains
inaccuracies or is missing key
elements
Does not explain the tax
implications related to
multijurisdictional operations of
a business, including interstate
and international
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Operating the Business:
Memorandum to
Stakeholders
[TAX-660-05]
Meets “Proficient” criteria and
shows keen insight into the
appropriate composition of
each section of the memo
Composes a memorandum to
stakeholders, including an
executive summary of your
recommendation and a detailed
support section
Composes a memorandum to
stakeholders, but memo is
cursory, contains inaccuracies,
or is missing key elements
Does not compose a
memorandum to stakeholders
5
Restructuring the
Business: Relevant Tax
Law
[TAX-660-03]
Meets “Proficient” criteria and
shows a complex grasp of tax
law related to this restructuring
Identifies relevant tax law for
restructuring the business
Identifies relevant tax law for
restructuring the business, but
explanation contains
inaccuracies or is missing key
elements
Does not identify relevant tax
law for restructuring the
business
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Restructuring the
Business:
Tax Costs
[TAX-660-03]
Meets “Proficient” criteria and
shows a complex grasp of the
tax costs of a restructuring plan
Calculates the tax costs of a
restructuring plan for each of
the stakeholders involved and
the business entity
Calculates the tax costs of a
restructuring plan for each of
the stakeholders involved and
the business entity, but
calculations contain
inaccuracies or are missing key
elements
Does not calculate the tax costs
of a restructuring plan for each
of the stakeholders involved
and the business entity
6
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Restructuring the
Business: Tax Benefits
[TAX-660-03]
Meets “Proficient” criteria and
shows a complex grasp of the
tax benefits of a restructuring
plan
Calculates the tax benefits of a
restructuring plan for each of
the stakeholders involved and
the business entity
Calculates the tax benefits of a
restructuring plan for each of
the stakeholders involved and
the business entity, but
calculations contain
inaccuracies or are missing key
elements
Does not calculate the tax
benefits of a restructuring plan
for each of the stakeholders
involved and the business
entity
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Restructuring the
Business: Memorandum
to Stakeholders
[TAX-660-05]
Meets “Proficient” criteria and
shows keen insight into the
appropriate composition of
each section of the memo
Composes memorandum to
stakeholders outlining
restructuring
recommendations, including an
executive summary of the
recommendation and a detailed
support section based on
research and analysis of
relevant information
Composes memorandum to
stakeholders outlining
restructuring
recommendations, but memo is
cursory, contains inaccuracies,
or is missing key element
Does not compose
memorandum to stakeholders
outlining restructuring
recommendations
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Estate Planning: Factors
in Estate Planning
[TAX-660-04]
Meets “Proficient” criteria and
demonstrates a complex grasp
of estate planning concepts for
stakeholder
Analyzes a client scenario to
determine appropriate factors
in estate planning for
maximizing the tax benefit of
the stakeholder
Analyzes a client scenario to
determine appropriate factors
in estate planning for
maximizing the tax benefit of
the stakeholder, but analysis
contains inaccuracies or is
missing key elements
Does not analyze a client
scenario to determine
appropriate factors in estate
planning for maximizing the tax
benefit of the stakeholder
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Estate Planning:
Recommendation
[TAX-660-04]
Meets “Proficient” criteria and
demonstrates a complex grasp
of estate planning concepts for
stakeholder
Formulates recommendation to
client based on research of IRS
and other resources
Formulates recommendation to
client based on research of IRS
and other resources, but
recommendation contains
inaccuracies or is missing key
elements
Does not formulate
recommendation to client
based on research of IRS and
other resources
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Estate Planning:
Research
[TAX-660-04]
Meets “Proficient” criteria, and
interpretation demonstrates a
complex grasp of estate
planning concepts for all
stakeholder scenarios
Interprets research of IRS and
other resources to determine
relevance to all stakeholder
scenarios
Interprets research of IRS and
other resources to determine
relevance to all stakeholder
scenarios, but interpretation
contains inaccuracies or is
missing key elements
Does not interpret research of
IRS and other resources to
determine relevance to all
stakeholder scenarios
5
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Estate Planning:
Recommendation
Memorandum
[TAX-660-05]
Meets “Proficient” criteria, and
memo shows nuanced
understanding of the
appropriate composition of
each section of the memo
Determines the appropriate
information to advise each of
the stakeholders and then
communicates the impact of
research results by composing a
brief recommendation
memorandum to the
stakeholders
Determines and communicates
the impact of research results
by composing a brief
recommendation
memorandum to the
stakeholders, but memo is
cursory, contains inaccuracies,
or is missing key elements
Does not determine the
appropriate information to
advise each of the stakeholders
or communicate the impact of
research results by composing a
brief recommendation
memorandum to the
stakeholders
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Articulation of Response Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
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
5
Total 100%
