Hi everyone I need help in preparing a tax memo for my Taxation class using 6 steps

Facts, Identify the issue, Locate authority, Analyze authority, Repeat 1-4 steps as many times as needed, Conclusion

Here is the question

In June of 2010, Uber introduced a new app that matched those who needed rides to drivers willing to drive people around in their private vehicles. Since then, Uber has expanded into an international company. New competitors, such as Lyft, has entered the market, and Google has announced their own ride sharing app. Using the phone app, Uber has been able to get around local laws and regulations imposed upon taxi companiesangering many local governments and companies.

In December of 2014, Uber announced they were suspending service in Portland for three months due to the legal battle between the city of Portland and Uber. Some cities, like Eugene, Oregon, are imposing fees every day on Uber, and recently voted that ride sharing companies are also subject to the same regulations as taxi companies.

Virginia is not immune to issues around Uber and similar services-- according to a report dated May 18, 2019, Uber drivers were taking advantage of surge pricing. Surge pricing is when the price of a good or service varies and changes based on supply and demand. Uber and Lyft drivers near Reagan National Airport knew the time when flights would land. 5 to 10 minutes before a plane landed, the drivers would turn their apps off and cause the price per ride to increase dramatically due to more people wanting rides than available drivers. The drivers would then turn their apps back on after the customers had requested rides and get the higher fair. Lyft responded that they will remove any drivers caught manipulating pricing in this manner.

Research case facts and assignment:

In anticipation of graduating, Norman O. Mowney (N.O. Mowney) received a luxury SUV valued at $70,000. Wanting to eat more than Roman Noodles, Norman hopes that to use the new car to earn some money. His roommate tells him about a new ride sharing app that will pay him for giving rides to those that need them. He decides to sign up as a driver on the spot. Being an accounting student, Norman figures he can drive people around while listening to CPA review courses. Norman also decides to get a new smart phone and data plan so he can also be connected and get his assignments through the app.

When signing up as a driver, Norman is surprised to learn that he didnt have to fill out a W-4, and he was informed to expect a form 1099 at the end of the year (not a form W-2) for tax reporting. Norman is told that he is an independent contractor; so all payments from the company to him will have no taxes (FICA or Federal income) withheld. He soon learns that the company pays a set amount for each passenger transported, and the app also informs him of what passengers to pick up and when. Additionally, the company requires that you meet certain standards; including greeting all passengers picked up with a smile and that all drivers must obey all laws and posted speed limit signs (any tickets/fines will be Normans responsibility to pay).

Norman is now excitedhe is no longer just a student, but he is the CEO of his own (small) company! Norman knows that he can also deduct expenses when computing his income for taxes.

Norman figures out what expenses he will incur while driving people around, and makes a list of them. Norman figures he can deduct the following expenses:

Cost of vehicle: $70,000

Insurance on car: $3,600/year

Liability Insurance: $1,000/year

Smart Phone: $600

Cell Phone plan: 1,800/year

Gasoline for vehicle: $3,240/year

Parking and traffic fines (incurred while transporting passengers): $350

Norman does not recall his tax class very well (he remembers Dr. Tree droning on endlessly about blah, blah, blah.it was all rather boring and Norman used the class to catch up on his sleep). As such, Norman hires you as his CPA and asks you to look at the situation and advise him of what he needs to do.

During the conversation, Norman estimates that he spends about 1/3 of his time using the vehicle and new cell phone for his business venture, and the remaining amount of time for commuting to school and various personal trips. He recalls something about being allowed a mileage deduction, and wants to deduct that as well.

Write a research memo for your permanent record similar to the one shown in your text. You do not need to write a separate letter.