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Assignment 3: Tax Periods and Method
Due Week 10 and worth 320 points
Imagine that you have always wanted to own a business and have now created a new start-up company.
Write an eight to ten (8-10) page paper in which you:
Analyze the start-up company you created. Include in your analysis the type of company you have created, its business objectives, and other factors that you believe are important to the success of the business.
Determine the types of accounting periods that you could choose from for the company. Choose the type of accounting period that would provide the greatest tax benefit. Provide example(s) to support your proposal.
Evaluate the appropriateness of the types of accounting methods that would be available for your business. Recommend the method that would minimize the tax liabilities for the company. Provide support for your rationale.
Choose at least two (2) specific transactions, and then propose one (1) special accounting method which your company would use to account for these transactions. Indicate any significant tax consequences that may result from the method you proposed.
Imagine you have decided to change the accounting method you chose after three (3) years in business, as you have discovered that another method would be more advantageous from a tax perspective. Analyze the rules regarding changes in accounting methods. Create a table that illustrates the effect on taxable impact for three (3) of your business’s unique transactions.
Develop an argument that supports your proposed accounting method change. Create a letter to the IRS to justify your position.
Use at least three (3) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Conduct basic tax research and tax planning on individual federal taxation issues.
Explain the issues for accounting periods and methods, tax computation methods, tax credits, and payment of tax.
Use technology and information resources to research issues in tax research and planning.
Write clearly and concisely about tax research and planning using proper writing mechanics.