Corporate Tax Decisions and Strategies

Tax professionals provide tax advisory services to their tax clients and offer strategies (pre-tax filing advisory) for reducing their client’s tax burden. In Unit 4, your team will offer tax strategies for reducing Timpanogos, Inc.’s tax burden. This part of your tax practice assignment involves a review of your client’s financial information and tax situations before preparing tax returns (pre-tax filing advisory). Review the client’s business and financial information from Comprehensive Tax Return Problem 64 in Chapter 5 of your textbook.
Complete and submit the following deliverables in one Word document:
1) On January 16 of the client’s tax year, Timpanogos, Inc. purchased two new machines and two used machines. The company considers the purchases as significant investments. As a result, the CFO of Timpanogos, Inc. is interested in knowing how the company can maximize its capital allowance or allowable depreciation deduction before preparing the year’s tax returns. In a one-page memo, reply to the CFO of Timpanogos, Inc. and advise the company on how they can maximize their capital allowance and/or allowable depreciation deduction.
2) Proper documentation is a critical part of the tax professional’s work. In two pages, explain the type of documentation and details of transactions that are needed to support each of the expenses that Timpanogos, Inc incurred.
3) Using a table, list all participating members and indicate the task(s) each completed.
4) List all participating members and their titles (e.g., Manager) on the title page of your paper. Each team member will submit a copy of the tax practice deliverable to Unit 4 Assignment 2 Dropbox for grading. Remember to organize your work using proper headings and APA style, and provide a minimum of three credible outside references, including at least one from the IRS’ website. Sources of credible references include the IRS, accounting firms, professional accounting associations, peer-reviewed articles, and other federal and state government websites.
Textbook Chapter 5 Problem 64 is attached as a file.