Scenario: Mr. Roland ran for a House seat during the last election, but lost (in a landslide). Mr. Roland raised $5.4 Million for his campaign. After the campaign, auditors discovered that Mr. Roland used $300,000 of those campaign funds for a personal vacation immediately after the election. Mr. Roland has asked you, his CPA, what are the tax consequences of his personal use of the campaign funds.

write a tax memo for your records on the issue you receive. Memos can be, at a maximum, 2 pages and the memo must (properly) reference one federal income tax law and one other primary source document (court case, regulation, revenue procedure, etc.). You do not need to write a client letter. Memos should have all required sections (Facts, Question, Discussion, Conclusion).