Directions
Open the Module Two Income List found in the Supporting Materials section and select three cases to research. Use the Module Two Income Assignment Template found in the What to Submit section and enter the names of the selected cases by copy and pasting the title into the template row labelled Case Selected. Then, complete the table for each of the three cases you’ve selected. Do this for each case to demonstrate your application of the research process using the Tax Research Guide found in the Supporting Materials section to perform your research. Be sure to cite your sources as shown in the example, specifically the IRC location, and interpret your understanding of the IRC language.
Based on your research, you will gauge your opinion of the tax position for each case and the confidence level followed by your interpretation of the IRC. You’ll also make suggestions or requests for further information, as needed.
Specifically, you must address the following rubric criteria for each of the three cases you choose to research:
- Identify the research topic using specific words to describe the intent. Include the following:
- Identify the area to be researched.
- Specify the approach to the research to determine taxability.
- Identify a primary source using the IRC section number that applies to the case research topic. Include the following:
- Use resources listed in supplemental materials
- Mirror the example on the template and cite the IRS code. Be specific.
- Identify a secondary source using the section of an IRS publication that clarifies the issue. Include one or more of the following:
- IRS publications
- IRS forms and instructions
- IRS articles
- Identify a supplemental source that describes the topic in plain language. Include one or more of the following:
- Professional organizations
- Professional articles
- State an opinion on whether income is taxable or nontaxable that is supported by research.
- Select a confidence level in the research. Choose high, medium, or low.
- Interpret the confidence level by connecting the research to the determination of taxability, making specific points. Include the following:
- Explain why the research topic is taxable or not based on research.
- Determine if additional information is needed to increase your confidence level.
Select three cases from the Module Two Income Assignment List. Research all three cases using the Tax Research Guide. Document your specific findings briefly and specifically as shown in the example.
Note: The Income Assignment List and the Tax Research Guide are located in the Supporting Materials section of the Module Two Income Assignment Guidelines and Rubric.
| Criteria | Example | Case #1 | Case #2 | Case #3 |
| Case Selected | ||||
| Summary |
|
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| Authoritative
Primary Resource |
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| Secondary Resource | ||||
| Supplemental Resource(s) | ||||
| Opinion(Taxable or Nontaxable) | ||||
| Confidence Level (Low/Medium/High) | ||||
| Interpretation | . | |||
| (Optional) Recommended suggestions or request for further information needed |
ACC 330 Module Two Income List
Instructions
1. Review the list of topics below and select three topics to research in depth.2. Apply the research process described in the Tax Research Guide found in the Supporting Materials section of the Module Two Income Assignment Guidelines and Rubric.3. Complete the Module Two Income Template found in the What to Submit section of the Module Two Income Assignment Guidelines and Rubric.
List of Income-Related Research Topics
1. Caleb received a prize totaling $400 from the local civic center without any action on their part and without requirement to provide any services as a condition of receiving the prize
.2. A married couple, Xi and Francis, have sold their primary residence. They purchased the home for $150,000 thirty years ago and sold the home for $780,000.
3. Cari’s grandmother sent her $12,000 in May as a gift, and another $5,000 was paid directly to her school in August for tuition
. 4. Interest of $500 was earned on state and local bonds that were gifted to Tannon when they turned eighteen.
5. Monique receives a stipend from her employer in the amount of $350 per month for qualified parking and/or transit pass reimbursement. At the end of the year, her employer also provides a turkey for Thanksgiving, which each employee receives (a value of $25).
6. Kathy received Form 1099-C reporting $1,000 in cancelled credit card debt. This included $150 in credit card interest from personal purchases made using the credit card
.7. Stacy received a settlement from a recent accident for $15,000. The award included $11,000 as settlement for personal physical injury and $4,000 for emotional distress associated with the accident. Stacy claimed related medical expenses from this accident as itemized deductions totaling $6,000 in the prior tax year.
8. Retired Army veteran, Korey, received grant funding in the amount of $10,000 for education, training, and subsistence allowance and $3,000 for his home to be designed for wheelchair living. These funds were paid to Korey by the Department of Veteran Affairs (VA)
.9. Shamed surrendered his life insurance policy for cash in the amount of $25,000. He previously paid $20,000 in premiums for this policy.
10. Alex and Frank are members of a barter club. Members in this club can contact one another directly to exchange services. Alex repaired Frank’s broken window, and Frank repaired Alex’s broken refrigerator.
11. Ellen bought a cottage for personal use for $20,000 in 1980 and made no further improvements or additions to it. A storm destroyed the cottage this January. At the time, the cottage was worth $250,000. Ellen received $150,000 from the insurance company in March and spent $120,000 rebuilding the cottage.
12. Justin received $12,000 in alimony payments for a divorce agreement settled in 2021.
13. Larry collected $4,500 in unemployment benefits from the State of Florida after being laid off from his former employer.
14. Dirk received payment from his employer in the form of Bitcoin for $1,200, which was the fair market value (FMV) at the time the currency was received.
15. Grace-Ann received $100 a week for 12 weeks to babysit her grandson, Alec, while his parents were at work”