Your client Mary Sue is the owner of The Gadget Store. In 2021, she started selling a wide range of her kitchen gadgets on e-Bay. Since these on-line transactions are conducted on the internet between her and the bidder, she has decided not to include these sales in her gross income when she files her tax return in early 2022. Is your client correct? Think about Internal Revenue Code 61. You should also explain to your client the possible ways the IRS could reconstruct her income from her eBay transactions. Your assignment is to write a client letter that is in the following format:

1. Introduction

2. Restate the facts and indicate that the findings, conclusions and recommendations are based on the facts as stated

3. Discuss the current tax law, the possible alternatives and the recommended course of action

4. Closing paragraph