You have been provided with several client files to review and will select one set of prepared tax returns to analyze from Client Tax Profile B found in the Supporting Materials section below.

Directions

Specifically, you must address the following rubric criteria:

1. Explain the federal tax law sources used in each of the prepared tax returns. Include the following:

• IRC code
• Tax tables
• 1-2 slides
• Speaker notes

Explain the filing requirements for the tax position taken in each of the prepared tax returns. Include the following:

• Filing status
• Qualifying dependents/relatives claimed, if applicable
• 1-2 slides
• Speaker notes

Explain taxable and non-taxable income. Consider the following:

• Taxable sources of income
• Profiles with non-taxable income
• Non-taxable income qualifications
• Reporting of non-taxable income
• 1-2 slides
• Speaker notes

Justify deductions taken in each of the prepared tax returns. Consider the following:

• Standard versus itemized deductions
• Deductions taken on prepared returns
• 1-2 slides
• Speaker notes

Evaluate tax credits applied in each of the prepared tax returns. Consider the following:

• Applicable credits taken
• 1-2 slides
• Speaker notes

Describe client profiles to assist with tax planning preparations. Include the following:

• High-level points from the profile(s) to determine clients goals
• Relevant factors that could impact the tax planning process
• 1 slide
• Speaker notes

Identify research necessary to find applicable tax planning solutions for the clients in each scenario. Include the following:

• Methods for assessing the client's tax situation for future tax planning
• Sources applicable to tax year in question to answer tax questions for the clients scenario
• Income limitations (i.e., earned income, income thresholds)
• Decisions for any dependents
• 1 slide
• Speaker notes

Describe the difference between tax avoidance and tax evasion in addressing the client profiles. Include the following:

• How tax planning can help reduce tax liability in a legal way
• What would be considered tax evasion
• 1 slide
• Speaker notes

Evaluate benefits of tax planning for the clients. Include the following:

• How to minimize tax liability to improve clients' future tax situation
• 1 slide
• Speaker notes

Create tax planning recommendations based on client profiles. Include the following:

• Steps that will improve tax position based on each client's goals (i.e., applicable tax planning solutions)
• Suggestions of how clients can do their taxes differently over the coming year to achieve their goals (i.e., changes that could be made to implement a tax planning strategy not currently applicable)
• Examples of how clients can improve tax position for the upcoming year
• 2-4 slides
• Speaker notes

Clients for Tax Planning Scenario Set 2 Education Credits

Tax Planning Scenario Education credits
Client(s) #1		Client(s) #2
Open Client 1040	1129	Open Client 1040	1132
Primary Taxpayers Legal Name	Trilby Keller	Primary Taxpayers Legal Name	Robert James
Primary Taxpayers Preferred Pronoun	She	Primary Taxpayers Preferred Pronoun	He
SSN	***-**-1129	SSN	***-**-1132
Age	47	Age	48
Occupation	Accounting Manager	Occupation	Psychologist
Citizen/U.S. Resident Status	U.S. Citizen	Citizen/U.S. Resident Status	U.S. Citizen
Languages	English	Languages	English
Marital Status	Married	Marital Status	Married
Spouses Legal Name	David Keller	Spouses Legal Name	Nora James
Spouses Preferred Pronoun	He	Spouses Preferred Pronoun	She
Spouses SSN	***-**-1130	Spouses SSN	***-**-1133
Spouses Age	53	Spouses Age	48
Spouses Occupation	Bookstore manager	Spouses Occupation	Office Manager
Dependent(s) (# - Relationship) (Name/Age/SSN)	1 Son; Wyatt Keller (Age 22) (***-**-1131)	Dependent(s) (# - Relationship) (Name/Age/SSN)	2 - Sons; Kris James (Age 18) (***-**-1134); Nolan James (Age 18) (***-**-1135)
Additional information:		Additional information: