Acct 612 Tax Research

Instructions

Snidely Limited spent $1 million this year to upgrade its manufacturing plant, which had received several warnings from the state environmental agency about releasing pollution into the local river. Late in the year, Snidely received an assessment of $700,000 for violating the state’s Clean Water Act. After he negotiated with the state, which cost $135,000 in legal fees, Snidely promised to spend another $200,000 next year for more pollution-control devices, and the fine was reduced to $450,000. How much of these expenditures can Snidely Limited deduct for tax purposes?

ACCT 612
TAX RESEARCH MEMO TEMPLATE
Your Firm
Your Town and State
Date
Relevant Facts
Specific Issues
Conclusions
Support
Actions to Be Taken
________ Discuss with client. Date discussed ________
________ Prepare a memo or letter to the client
________ Explore other fact situations
________ Other action. Describe:___________________________
_______________________________________________________
Preparer ________
Reviewer ________
Partner ________
ACCT 612
TAX RESEARCH MEMO: DEDUCTIONS RESEARCH ASSIGNMENT
OVERVIEW
For this assignment, you will be submitting a tax research memo regarding the scenario detailed
below. The purpose of this assignment is for you to research the proper taxation handling of
fines.
INSTRUCTIONS
The memo should be submitted in the form of a Microsoft Word document, using only the
template provided and labeled as follows: lastname_memo deductions.doc. The Relevant Facts,
Specific Issues, and Conclusions sections of the memo should be thorough but concise. The key
portion of the memo will be the Support section, which should be properly supported by
appropriate regulation citations (be specific with section, number, paragraph, and subparagraph
as applicable).
Prepare (in good form) a research memorandum to the file.
As this is a memo and not a formal writing assignment, current edition APA format is not
required. Furthermore, there is no need to submit a title page or research page. Just substitute
“Your Firm” at the top of the memo with your full name.
INSTRUCTIONS
Snidely Limited spent $1 million this year to upgrade its manufacturing plant, which had
received several warnings from the state environmental agency about releasing pollution into the
local river. Late in the year, Snidely received an assessment of $700,000 for violating the state’s
Clean Water Act. After he negotiated with the state, which cost $135,000 in legal fees, Snidely
promised to spend another $200,000 next year for more pollution-control devices, and the fine
was reduced to $450,000. How much of these expenditures can Snidely Limited deduct for tax
purposes?
Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.