Tax memo and Letter

[Your Name]

[Your Professor 's Name]

[Your Subject]

[Date of Submission]

[May 3 , 2008] - [tentative date only , you can change it]

TAX MEMORANDUM

FROM : [your name]

SUBJECT : Mr . and Mrs . Ron Smith

Engagement : Conclusion

Section 911 (a ) provides a tax subsidy for U .S . citizens who work abroad and for employers who send employees to work overseas . Prior to TIRPA a qualifying individual under the Section 911 had the ability to exempt from I .S . personal income tax each year up to U .S 80 ,000 of foreign

br earned income . This tax exemption is only available to a U .S . citizen who has been a bona fide resident of a foreign country for a taxable year or a U .S . citizen or resident who is physically present in a foreign country for at least 330 full days during a period of 12 consecutive months

In the case of Mr . Smith who signed a contract that he temporarily waived his right in the section 911 of the Internal Revenue Code . Due to this contract his right to exempt his tax subsidy as an overseas worker were gone . He will pay the right amount of tax that is due to him based on his annual income

In Section 912 , the exemption for certain allowances . Under this section Mr . Smith can be exempted for his foreign allowances . Section 912 of the Internal Revenue Code can only be avail by the civilian officers and the employees of the Government of the United States . In the case of Mr . Smith , he is not a civilian officer but he is an employee of the government therefore it is possible for him to avail the tax exemption for his foreign allowances

Section 119 of the Internal Revenue Code , tackles about the meals or lodging furnished for the convenience of the employer . Under this section Mr . Smith can avail tax exemption of 7 ,506 due to he is an individual who is furnished lodging in a camp or a town located in a foreign country by or on behalf of his employer , such camp or town shall be considered to be part of the business premises of the employer . In his case he is not the only one employee that resides in this town and these can lead to a conclusion that the area is practically near the working space and available to public and can accommodate 10 or more employee to reside in

Conclusion

Mr . and Mrs . Ron Smith can exclude the value of the lodging furnished to them which is the amount of 7 ,506 from their gross income

Client Letter

[Name of the company]

[Location of the company]

[May 3 , 2008] - [tentative date only you can change it]

Mr . and Mrs . Ron Smith

Colorado Springs , Colorado

Dear Mr . and Mrs . Smith

This letter is in response to your request for us to research and advise you concerning excluding the value of lodging furnished to Mr . Smith

You can exclude the value of lodging furnished...