Final Paper [CLOs: 1, 2, 3, 4, 5] Prior to beginning work on this assignment, re

Final Paper
[CLOs: 1, 2, 3, 4, 5]
Prior to beginning work on this assignment, review Chapters 12 and 13 in the course textbook.
The final assignment for this class is the Final Paper. Its purpose is for you to demonstrate an overall mastery of the techniques used in, and knowledge of, tax research covered in this class. You will be given the description of a fact pattern and will be asked to research the Internal Revenue Code and regulations to find the answers to the question at hand. After finishing your research, you will write a paper documenting your research and your conclusions based on your findings. You must cite the Internal Revenue Service (IRS) tax code that supports your recommendations.
Fact pattern:
Your client, Deborah Harris, writes you and asks you to assist her in understanding her filing obligations surrounding the video business that she started during the last tax year, for which she thinks she has a filing obligation. She wants to make travel videos to publish on her blog and YouTube channel. It’s early and she doesn’t have much income yet, but she believes that she has substantial potential to earn advertising revenues. Additionally, she plans to earn revenue by building her library of content and then licensing it to various studios and production companies.
Below are her income and expenses that she hopes to include on her tax return:
Non-photography income from her full-time banking job for which she gets a W-2 form for $75,000.
Video equipment she purchased for $15,000.
Equipment insurance premium of $500.
Computer equipment for $3,800.
Computer software for $675.
Various magazine subscriptions she purchased for $1,000.
Travel supplies (suitcases and such) she purchased for $500.
Travel expenses of $15,000 for photography trips she took to Asia to build content.
Part of the mortgage associated with where she setup her video studio for $1,500.
Deborah has the following outstanding questions she hopes you can answer:
She is thinking of beginning a sole proprietorship, but is also open to the idea of a partnership (with a friend of hers who does website development), an S corporation, or a limited liability company. What are the tax advantages and disadvantages of each business form?
Out of all the expenses of the business she listed to you, which ones will she be able to deduct on her tax return?
Out of the expenses she will deduct, will she be able to deduct the full amount on her tax return?
What are the state and local level tax implications? (Assume that Deborah lives in your home state – North Carolina.)
In your paper,
Explain the tax advantages and disadvantages of various business forms including sole proprietorship, partnerships, S corporations, and limited liability companies (LLCs).
Explain which costs are appropriately tax deductible as business expenses including any important rules or limitations.
Evaluate state and local level tax implications based on a specific state – North Carolina.
The Final Paper
Must be five to seven double-spaced pages in length (not including title and references pages) and formatted according to APA Style (Links to an external site.) as outlined in the Writing Center’s APA Formatting for Microsoft Word (Links to an external site.) resource.
Must include a separate title page with the following:
Title of paper
Student’s name
Course name and number
Instructor’s name
Date submitted
Must address all the questions the client asked with critical thought supported by research findings from primary sources.
Must utilize academic voice. See the Academic Voice (Links to an external site.) resource for additional guidance.
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
For assistance on writing Introductions & Conclusions (Links to an external site.) as well as Writing a Thesis Statement (Links to an external site.), refer to the Writing Center resources.
Must use at least five scholarly or credible sources in addition to the course text.
The Scholarly, Peer-Reviewed, and Other Credible Sources (Links to an external site.) table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
To assist you in completing the research required for this assignment, view this Quick and Easy Library Research (Links to an external site.) tutorial, which introduces the University of Arizona Global Campus Library and the research process, and provides some library search tips.
Must cite all tax references using the format described in the required reading for the course.
Must document any information used from sources in APA Style as outlined in the Writing Center’s APA: Citing Within Your Paper (Links to an external site.) guide.
Must include a separate references page that is formatted according to APA Style as outlined in the Writing Center. See the APA: Formatting Your References List (Links to an external site.) resource in the Writing Center for specifications.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.