Background:

A married couple $($calendar year taxpayers$)$ comes to you for tax advice. They have a $20-$year old

daughter whom took some time off after high school and began college in the Fall semester which

started in September and ran until December $20.$ The daughter earned $$10,000$ working at a local

bakery during the year. The daughter registered for $15$ credits worth of classes $($her parents paid$)$ on

August $25$ and was required to attend orientation on August $28$&$29.$ The couple wants to know if the

daughter can be claimed as a dependent and what credits they may be entitled to if she is a dependent.

Assignment:

Research the matter and specifically review a $1998$ Letter Ruling by searching $"1998$ full$-$time

student."

Draft a professional client memo of a MAXIMUM of one page on accounting firm letterhead

answering the question and alerting the client to some other options which may be considered

to have a different status regarding authority. If the letter ruling is not authoritative, notify the

client what the pitfalls of following the ruling would be including the ability to have penalties

abated and make a recommendation.

Print the appropriate letter ruling and attach it to your memo.