Fact Pattern

South Florida CPAs, LLP is a boutique accounting firm in Tampa, FL. You are currently employed as a tax consultant at South Florida CPAs and have many intriguing clients with interesting (and sometimes strange) circumstances. Because the 2019 tax filing deadline is rapidly approaching, you receive several phone calls from clients inquiring about the tax consequences of recent transactions and events. The second and third pages of this document contain a summary of these phone calls.

Note: you are expected to complete this project using current, postTax Cuts and Jobs Act (H.R.1) law. In other words, apply the new law to the fact patterns below. To the extent your conclusion is contingent on an unknown fact, you should discuss possible outcomes for different assumptions.

Deliverables

There are two distinct deliverables for this project. Please ensure that you submit both for an opportunity to earn full credit on this assignment.

First, please prepare a separate internal research memo for each client inquiry you have been assigned (three in total). In general, the memos should document the analysis you performed and conclusions of your research. More specifically, the memos should reflect the following about each clients inquiry:

• Relevant facts
• Issues (questions) identified from the facts
• Applicable primary authority (importantly, IRS Publications may not be your only source for any particular client inquiry)
• Conclusions and recommendations reached as a consequence of your research
• Analysis performed (i.e., how the primary authority cited above addresses the issues)

You may use the template found in Exhibit 29 of your textbook to guide you in drafting your memo.

Second, once you have completed your memo, please attach copies and/or screenshots of all primary resources used in formulating your conclusions to your first deliverable.

Other Items

Work will be performed individually. As noted in the announcement on Canvas, you have randomly been assigned to perform research on three inquiries from the list below. You may view your assigned inquiries on page four of this document.

Deliverables will be evaluated on completion and adherence to the instructions above, but I do expect a bona fide attempt. Please make every effort to ensure that your submission reflects a professional document that you would be comfortable sending to a client who has paid substantial fees to have you perform this work.

Once complete, please upload your memos to Canvas.

Client Inquiries

1. Fred and Ida have discovered that if they get divorced in December of this year, file as single taxpayers, and then remarry in the following year, the arrangement would result in significant tax savings. Is this a permissible tax planning strategy?