ACC 7440 Tax Planning Memorandum

Each student in ACC 7440 writes two Tax Planning Memoranda, each with and accompanying Excel spreadsheet that will serve as supporting workpaper. Each memorandum is based on a point of tax law as described in specific chapters of the CCH textbook in the course.

Step One: Read the assigned chapter(s), and look for an idea, tax rule, or issue that you find particularly interesting. Take some time to read up on that point of tax law by browsing various tax, estate and financial planning resources, such as::

"Estate Law Review Articles," one of the Sources that may be selected at the Legal tab of Lexis-Nexis Academic Universe within the online databases available to Wayne State University students.
"Tax Law Review Articles," another one of the Sources that may be selected at the Legal tab of Lexis-Nexis Academic Universe within the online databases available to Wayne State University students.
The resources available at the Financial and Estate Planning tab of the CCH Tax and Accounting library within the online databases available to Wayne State University students.
The resources available in the RIA Checkpoint library within the online databases available to Wayne State University students.

For additional suggestions on using the RIA Checkpoint library, consult the "How to Study for ACC 7440" page of the syllabus for this course.

The resources available in the LegalTrac library within the online databases available to Wayne State University students.

Once you find and study some resources that help you understand the parameters of your selected point of tax law, proceed to Step Two.

Step Two: Download the Tax Planning Memorandum Template from the Course Documents section of Blackboard. Enter your name, but not your student number or any other identifying or personal information, at the upper right corner of the document. Save the document onto your own computer, hard drive, or storage device with a file name that includes the first initial of your first name, and your last name, and short phrase identifying your issue, separated by hyphens. For example, suppose a student named John Nopzinger has decided to focus on the issue of deducting -- as a medical expense -- the installation of whirlpool and spa in the home (as recommendd by a physician treating arthritis), as a deductible medical expense. The MS Word 2003 document file name for John's Tax Planning Memorandum would be: J-Nopzinger-deductible-whirlpool.doc. Note: Office 2007 users should "Save As" Word 2003 so that the file is accessible by students using Microsoft Office 2003.

Step Three: Complete each Tax Planning Memorandum by thoughfully completing each section of the Tax Planning Memorandum template. Make sure that you provide complete and full answers to each question, in your own words. Do as much outside reading and research as you find helpful as you work on your analysis (see Step One above). As you do, refer to any outside sources with a proper reference citation. Also add a bibliography to the end of your Tax Planning Memorandum, and properly cite - in the Turabian/Chicago citation format using footnotes -- any outside web pages, articles, or other resources that you draw from in your Tax Planning Memorandum.

Step Four: Complete each Tax Planning Memorandum as assigned on the Discussion Board discussion thread. The Subject line of your Discussion Board thread should include the case number and your name. For example, the Subject of the discussion thread for John Nopzinger's Tax Planning Memorandum would be, "Tax Planning Memorandum - Deductible Whirlpool - John Nopzinger" (without the quotation marks). Attach your Tax Planning Memorandum MS Word 2003 document file to the discussion. As part of the Message of your discussion, provide a brief synopsis of your Tax Planning Memorandum.. (Do not include the questions, just your own summary of your issue and your analysis.) Then add any observations, comments, or other thoughts about the issue that you would care to offer.

In support of your Tax Planning Memorandum, develop an Excel spreadsheet that provides clearly labeled calculations. This Excel spreadsheet will not be separately uploaded: it will be embedded into the Tax Planning Memorandum (a Word 2003 document).

Never enter data twice: always use the Excel spreadsheet functions so that any previously entered data is referenced rather than re-entered. Use a 3-column format with footnotes:

The first column (A) should be a narrow column, not used in the main calculations top part of the workpaper.
The second column (B) should have labels for each line item of your workpaper.
The third column (C) should be a narrow column with footnote numbers only.
The fourth column (D) should provide numbers and calculations. A fifth (E) and sixth (F) column can be added for subtotals and totals if you prefer to do this (but it is not ncessary).
Below the main calculations (described above), column A should have the same footnote numnbers as referenced above in the third (C) column.
Below the main calculations, column B should contain footnotes (text can "bleed" over to the third and fourth columns, but the entire worksheet should be "printable" and should be no wider than one sheet of paper when the worksheet is printed using no smaller than a 10 point font).

Additional brief calculations can be included in the footnote area of your spreadsheet, but, again, refer to numbers user Excel rather than re-typing numbers.
Tax calculations should be set forth in footnotes with reference to the most recent Federal Tax Rate Schedules.

All calculations must be completed within Excel, using Excel. Do not manually type "answers" to any calculations.
The MS Word 2003 document file name for John's Tax Planning Memorandum workpaper would be: J-Nopzinger-deductible-whirlpool.xls. Note: Office 2007 users should "Save As" Excel 2003 so that the file is accessible by students using Microsoft Office 2003.

For information about embedding Excel information into a Word document, see:

Step Five: Step Five is ussually completed after 6:00 p.m. on the due date, and so that all students will have already submitted their Tax Planning Memorandum and Workpaper. Carefully read through some other students' Tax Planning Memoranda and workpapers. Select at least one entry that you find interesting (preferably one that has not already received replies - or many replies - from other students). As you see fit, consider doing some outside reading and research in connection with that student's issue. Then respond on the Discussion Board to that student's Tax Planning Memorandum by replying with a substantive observation, recommendation (including, as appropriate, any recommendations regarding additional readings, references, web pages, or other resources that might be helpful), critique, disagreement, or other similar response that will lead to further thoughtfulness and discussion. Specific suggestions for improving a student's memorandum, or workpaper, or both, will earn full credit. A reply that amounts to little more than "I agree" or "Good job" will not qualify for this part of the assignment. It is important that you add something of value to the other student's Tax Planning Memorandum or workpaper (or both), in the form of constructive criticism, disagreement, critical observation, research, or other thoughtful response. Be respectful, but help lead the thinking to a new level.

Step Six: Enter at least one additional other reply on the Discussion Board, in response to your own Tax Planning Memorandum comments, or another student's Tax Planning Memorandum, or some combination of the above. This is a collaborative exercise. Feel free to enter into an ongoing discussion that might continue for several days.