Homework: Denver Manufacturing Company
Megan (chair of the board of directors) and Matthew (company president) each own 50% of Denver Manufacturing Company. Denver Manufacturing Company is experiencing difficult financial times. In fact, last month, Megan used $550,000 of payroll taxes and income withheld from employee paychecks to pay a creditor that threatened to cut off supplies.
Megan willfully used these government funds for the operations of the business, but it was not enough. The company missed the next two payrolls, and today, other creditors took action to shut down Denver Manufacturing Company altogether.
How much will the IRS assess in taxes and penalties in this matter and from whom? How can you, as a tax professional, best offer service to Madison, Martin, and Washington? Address these matters in a memo for the tax research file.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.