Overview: In addition to helping clients respond appropriately to Notices of Proposed Adjustments (NOPAs) that may arise from IRS audits, you must help the clients ensure that the same issue does not reoccur in the future. This may sometimes require drafting entirely new policies to govern the tax accounting procedures for specific circumstances. For this short paper assignment, you will draft a recommendation for a new per diem accounting policy that the client from the final project scenario can implement going forward that will ensure that the issue that resulted in the NOPA will not occur in the future. While not an exact match for the Proactive Measures section of your final project NOPA response plan, the policy you develop for this assignment will be applicable to successful completion of that section.

Prompt: With the ideas from this module's discussion, draft a sample policy relating to per diems that will be used for accounting and tax purposes, and be specific on how the client should account for per diems for GAAP/tax purposes. Use the format of the client letter in Appendix A of your course text.

In your letter, include the following:

1. Provide an introduction to the letter. 2. State the purpose of the letter. 3. Explain the steps you took to research the per diem issue. 4. State relevant facts from the client's situation. 5. State the relevant laws and regulations and GAAP. 6. Give an analysis that explains why you are recommending the new per diem policy, with supporting evidence from relevant tax accounting procedures and regulations. 7. Recommend a new per diem accounting policy with a specific example illustrating how the policy should be implemented.

Your memo must:

Provide an accurate and complete analysis of tax regulations and GAAP as they apply to the client's situation that explains in detail why you are making the specific recommendations for the new per diem accounting policy. Provide an appropriate policy recommendation that outlines in detail the specific guidelines for accounting for per diems with a specific example of how the policy should be implemented. Use simple language (vocabulary and sentence structure) to communicate a clear and easily understood message designed for clients. Employ evidence from credible resources to effectively support the analysis and policy recommendation. Adhere to appropriate memo format that follows the example from the textbook and uses a logical sequence for information.

Rubric Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format.