Facts

Reverend Ann Anderson qualifies as a minister for income tax purposes. She receives a $$92,000$

annual salary and a $$30,000$ housing allowance. She pays $$23,000($including utilities$)$ per year

for the house in which she lives and spends $$5,000$ on home furnishings. Reverend Anderson

also receives cash gifts during the year from church members for performing their weddings,

funerals, and baptisms.

Issue

What amount of the salary, the housing allowance, and the gifts must Reverend Anderson

include in her gross income?

Required: Prepare a file research memo to address Reverend Anderson's gross income question.

You do NOT need to address the employee versus self$-$employed issue.

Follow the format in Exhibit $10-2$ in your textbook, but omit $(1)$ the Actions to Be Taken

section and $(2)$ use shortened citation formats in the Analysis and Summary section.

One group member should include PDF copies of all the authorities used in the memo.

You do not need to reword the facts or the issue provided above. Use Times Roman $12$ font,

single line spacing within a paragraph, and double line spacing between paragraphs and

sections. Note: Single line spacing is NOT the default line spacing in Word. Because

there is just one issue, you should not number your conclusion and your analysis and

summary sections.

Include discussions of

the relevant code sections,

the relevant regulations,

at least one relevant court case related to the housing allowance,

at least one relevant court case related to the gifts, and

any other relevant primary authority that helps answer this question.

Do NOT include any district court cases or Tax Court small cases in your analysis unless these

are the only cases available. Always check the citator.

This is an independent assignment $($i$.$e$.,$ do NOT work on the assignment with students in the

other class groups or other individuals not enrolled in our class$).$ Be sure to use the correct

format for the citations. Do not copy and paste explanations from your sources. In this class,

you are developing skills to interpret the tax law and communicate these interpretations.

A few pointers:

Your analysis should follow the hierarchy of the sources of federal tax law. The Internal

Revenue Code is the law, so all research should begin with the relevant code section$($s$).$

Relevant Treasury regulation$($s$)$ should follow. Then you can fill in with other primary

sources. Do NOT reference the IRS Publications or any secondary authority in your memo.

When applying the law to the client's facts, do not rely on a citation without explaining the

relevant content of the citation $($see chapter $10$ slides$).$

Use the citation formats located on textbook pages xviii and xix $($also posted in Canvas$).$ For

cases, provide only the official court reporter citation, if available $($see chapter $5).$

Review your work for proper grammar use and spelling. Minimize wordiness and use the

active voice whenever possible. Avoid using first$-$ and second$-$person pronouns $($e$.$g$.,$ I, my$,$

we$,$ us$,$ you, your$).$ Use complete sentences. Refer to our chapter $10$ slides and discussion.