You are a first year tax accountant with a public accounting firm. Your supervisor gave you an assignment to prepare your first (1040) tax return for 2019. Recall that 2020 tax forms are not available until late December or January. Threshold and limits are available for both years.
The clients brought in their tax organizer only partially completed with a pile of tax information forms, and a box of receipts. You were given the job to organize all the data and then prepare the client’s tax return.
The information provided may consist of income that is excludable and disbursements that are not deductible or are limited due to phase-outs and thresholds.
Additionally, you are required to draft a letter to the client providing an overview of their tax situation. Keep in mind that this is an overview highlighting important information pertaining to their tax situation and
not a line-by-line discussion
of the return. The detail information is provided on the prepared tax return. They are a successful and busy couple relying on your tax expertise for advice and guidance.
As you prepare the return additional clarification may be needed. Don’t hesitate to contact the client or your supervisor (professor). However, organize your request with all of your questions at once, if possible. Clients and supervisors are busy and don’t want to be bombarded with multiple requests for information. Also, don’t wait until the last minute and create stress for yourself and the client or supervisor.
Requirement:
Your grade will be based on the proper reporting, categorizing, including, and excluding, as appropriate, income and deduction items, as well as other pertinent information.
You can use commercially available software if you have access. Otherwise, use forms downloaded from IRS.gov and prepare manually. You will also be required to write a client memo.