Response to the following problem:
On May 1, Rick formed a new corporation, Red Inc. He spent $3,000 in legal fees and paid the state $600 in incorporation fees. Red, Inc. started operating its business on May 10. Can Rick or Red, Inc. deduct either of these organizational fees?
Requirement: Prepare a concise tax memo (no more than 1 page other than the cover page) including the following elements.
Identify the facts and tax issue(s),
Locate the Internal Revenue Code Section using proper citations.
Analyze the situation and reach your conclusion.
In addition, briefly describe how you found your primary sources, e.g. what keywords you used in searching, what documents/places you have reviewed that lead to the primary sources. Any tips and/or lessons you've learned in the research process.