Your clients, Mary and John Smith seek your advice on a technical matter. Mary was a manager in a high-end resort but has since retired. For long-term employees and retirees, the resort allows a certain number of free nights per year. Mary qualifies for this as she worked for the resort for 30 years. This year, 2022, Mary decided to let her daughter and new husband use the free nights for their honeymoon. Mary reserved the Bridal Suite for them. The resort has already issued Mary a form 1099 that shows the value of those nights are taxable income. Mary and John don't understand this and don't agree with the resort.

REQUIREMENTS:

1. Identify and Research the issue

2. Write a memorandum to your manager explaining the issue and your recommendation and the reasons for your recommendation.