Problem
You will research changes to tax regulations related either to tangible property under Section 162 and 263(a) or to expense stripping under Section 385, and draft a letter to clients who would potentially be impacted by those changes. You will explain the impact of the changes, advise your clients what action to take in response to changes to those specific regulations, and offer general tips on how to maintain awareness of new tax regulations that may impact their business. Read both Change Is Coming: Accounting Method Changes Under the Tangible Property Regulations and Earnings-Stripping Rules Make Many Changes From Proposed Regs., found in the Module Three resources, and choose the changes mentioned in one of the articles-either changes to Sections 162 and 263(a) or Section 385-for in-depth research. Use the format of the client letter in Appendix A of your course letter to clients potentially impacted by your selected regulation changes. In your letter, include the following:
A. Provide an introduction to the letter.
B. State the purpose of the letter.
C. Explain the steps you took to research the changes.
D. State the relevant laws and regulations.
E. Give an analysis of the potential impact of the regulation changes.
F. Offer advice on actions that clients should take in response to the specific regulation changes and tips they can follow to be proactive in maintaining an awareness of new tax regulations that may impact their businesses.
Note: Because you do not have facts relevant to a specific client case for this assignment, you may assume that this memo is intended for all clients who might be impacted by your chosen regulations and omit the client facts section from the client letter format in the textbook for this assignment.
1) Your memo must:
2) Provide an accurate and complete analysis of the impact of the regulations and appropriate recommendations for specific actions that clients should take in response to the changes based on that analysis and general advice for being proactive in maintaining an awareness of new regulations released by the IRS that may impact clients' businesses.
3) Use simple language (vocabulary and sentence structure) to communicate a clear and easily understood message designed for clients.
4) Employ evidence from credible resources to effectively support the analysis and recommendation.
Adhere to appropriate memo format that follows the example from the textbook and uses a logical sequence for information