Scenario

You are a tax associate with a large tax accounting firm and are compiling a comprehensive report about a new outreach initiative for SageGreen Computer Corporation. SageGreen has hired your accounting firm to assist in deciding and implementing a new energy$-$ and environment$-$friendly initiative to add to the company next fiscal year. Your manager has tasked you with choosing SageGreen$$s new project, compiling a research report, and providing future tax suggestions.

This project will help you understand tax laws and how to communicate with potential clients. You will need to conduct outside research using scholarly sources about this potential business venture and communicate your findings and recommendations.

Directions

Complete an inter$-$office memo showing current data and research relating to the most recent Form $1120$ filed for SageGreen, which was accomplished in Project One. Also, complete a client$-$facing letter recommending future tax strategies to help SageGreen with the new energy$-$friendly project that you have chosen.

Part One: Memo

Write an analysis of the impact of tax laws and incentives as demonstrated in this current year$$s tax return.

Specifically, you must address the following:

Explain the relevant tax laws and regulations for the client company.

Determine the tax and financial impact on the organization of relevant tax laws.

Explain the advantages and rationale of the client company conducting a thorough cost$-$benefit analysis. Consider the following in your response:

Difference between revenue earned and costs saved

Impact of estimated costs and benefits

Goal of the tax liability reduction

Describe the ethical considerations of a tax preparer. Reference Circular $230$ to support your argument.

Part Two: Client Letter

Write a reflection to the client that discusses the tax recommendations and consequences of your newly chosen energy$-$friendly initiative.

Specifically, you must address the following:

Identify the tax effects of various options that the client may choose in the next fiscal year. Consider the following in your response:

Tax laws, regulations, and codes

Varying business strategies

Options for tax$-$planning software

Evaluate different tax planning strategies to help the company$$s future financial goals.

Discuss why calculations of financial projections impact the client$$s future goals.

Determine appropriate incentives to reduce the organization$$s future tax liability. Include the following in your response:

Future of the company$$s new initiative

Potential tax credits

Recommend an optimal improvement to the company$$s future financial goals.