1. Prepare an engagement letter to the client. See examples on the web page.

2. Complete the Tax Return for the Client.

3. Research tax planning ideas.  There are ideas in the text, articles on the web, and in the CCH web service.

4. Retain these working papers with the documentation of your search. (EX. code sections, cases, articles, and text pages.)   

5. Prepare a "memo to file." (maximum page length of 3)  This does not go to the client.

A. Restate only the facts that relate to the tax planning ideas.

B. Develop only two tax planning ideas including all benefits and costs.  Every idea has a cost such as borrowing value of money, loss of income, and risks.

C. Each idea must be cited from the tax law.

D. Summarize the code, ruling, case (brief), and/or other authority you are using as support. Put this section as an appendix to the memo. You can attach a copy of the authority in the appendix rather than summarizing the authority. Do not attach any document that you do not refer to in your memo. Make sure it is a primary source.  Maximum of two pages.

E. Each idea must have detailed calculations showing the tax that can be saved using the data from the tax return.  Make a final calculation showing savings from both ideas and your fees.  The result should be greater than the costs.  Assume you change $50 per hour.

G.  Do not suggest anything that would be offensive to the client.

6. Prepare a second letter to the client explaining your findings. Maximum of one page.

A. Proper salutation.

B. Restate the facts that relate to the tax planning.

C. Explain your tax planning ideas in a general manner indicating your reasoning of how it will reduce their taxes. Indicate that they are suggestions based on the current law and the data from their tax return. Do NOT include numbers.

D. Invite the client to visit or call for a more detailed explanation.        

7. Prepare a cover sheet with group names, date, class, and case name.

8. Two page double-spaced self-evaluation must be included using font 12 and one inch margins. All group members must sign the evaluation indicating agreement. If you do not agree, you must send the professor a note indicating why you could not sign the evaluation. Only include in the evaluation your contribution and not that of other members of the group.  Do not use the words we, us, or our.

9. A group log is required to indicate your meetings times and the members names that were present. This also includes meetings on the net.

 You will also be graded on following instructions, grammar, and proper cites.

Tax Return

25

Engagement Letter

20

Tax Planning Memo

40

Client Letter

20

TOTAL

150