Tranquility Funeral Home, Inc., your client, is an accrual basis taxpayer that sells preneed funeral contracts. Under these contracts, the customer pays in advance for goods and services to be provided at the contract beneficiary's death. These payments are refundable at the contract purchaser's request, pursuant to state law, anytime until the goods and services are furnished. Tranquility, consistent with its financial accounting reporting, includes the payments in income for the year the funeral service is provided. The IRS agent insists that the payments be prepaid income subject to tax in the year of receipt. Your client believes that the amounts involved are customer deposits. Write a letter to Tranquility that contains your advice about how the issue should be resolved. The client's address is 400 Rock Street, Memphis, TN 38152

Pages 1-3 (body of memo)

In separate paragraphs

Briefly summarize the problem in your own words

Explain your proposed solution

Give your argument for your proposed solution citing sources

Page 4 = Works Cited

List references - author or site name first, then title of site, then URL or publisher and if password protected, directions on how to find the information at the URL.

(RIA Checkpoint must be one of your sources and can be your only source.You cannot use the textbook as a source.)In RIA, if you hit the print button on the bottom of the page the screen that comes up will give the directions to the source at the top left hand side. (see e.g. attached.)

Page 5 - ?

Cut and paste from source documents(see e.g. attached)

THE PAPER IS WORTH 100 POINTS, 50 FOR CONTENT AND 50 FOR GRAMMAR.CHECK YOUR GRAMMAR AND STRUCTURE CAREFULLY.IF YOU HAVE OVER FIVE ERRORS YOU WILL RECEIVE ZERO POINTS FOR THE GRAMMAR PORTION OF YOUR MEMO GRADE.