ACC 330 Final Project: Client Communication on Tax Return Results

This assignment is a comprehensive final project for an ACC 330 course, simulating the role of a tax professional. The project requires the creation of a professional letter to a client, addressing their tax return results and providing tax planning advice. The letter covers key areas such as factors influencing tax liability, including taxable income, exemptions, and deductions. It also addresses the tax implications of selling a principal residence, offering guidance on potential tax savings through retirement contributions and charitable donations. Furthermore, the assignment emphasizes ethical and legal standards in tax practice, highlighting the importance of client confidentiality, professional responsibility, and accurate communication. The project incorporates real-world scenarios, such as client inquiries about reducing tax liability and the sale of a home, requiring the student to apply their knowledge to provide practical and informed advice. The provided solution demonstrates a clear understanding of tax principles, effective communication skills, and adherence to professional ethics.

Maloney, Hoffman, Raabe, & Young, CPAs
5191 Natorp Boulevard
Mason, OH 45040
[Today’s Date]
Freida
633 Oak Street
Corbin KY 40799
Dear Freida:
I have provided a brief explanation based on the critical areas relating to tax concerns in
this letter. I have discussed the various factors that influence an individual’s tax burden, how the
loss or gain from a sale of the residence is treated, ways to reduce tax liability figure, the ethical
and legal constraint for tax regulation. They are as follows:
Some main factors are used to find the tax liability of a person in the United States of
America. These are as follows:
1) The total taxable income of the person is the most significant factor that is required to
find the tax liability as not all of the income of a person is payable. Also, there are
different tax percentages based on the different levels of earnings of a person in the USA
(Ballard-Rosa, Martin and Scheve 2017).
2) There are several exemptions based on the different factors of an individual like
exemptions for students, exemptions for marital status, etc.
3) The taxable income is calculated after all the removal of all the various adjustment.

4) There are some tax benefits based on the marital status of an individual.
5) The tax deductions of an individual depend on various factors like the amount, marital
status, age of the individual.
6) An individual may receive a tax credit based on whether the person has expenses related
to childcare. Also, some other things come into factor like whether the individual has any
energy-saving product at home even if they are pursuing post-secondary, also if they have
any insurance plan that is under the government.
As per the federal taxation system in the USA if a person earns a profit from the sale of
the house then if he or she is single they may not include this amount in their income for up to $
250,000, and if he or she is married, it is up to $ 500,000. Loss on the sale of this type of
residences is not taxable as per the federal tax system (Casal et al. 2016).
There are specific techniques that an individual may use to reduce their tax liability. They
are as follows:
1) A person may start contributing higher for their retirement.
2) A person may start contributing to plans that are being funded by the organisation for
which the individual is working.
3) A person may also sell their investments to include them in their income. This inclusion
will reduce the tax to a certain extent.
4) One of the most effective ways to reduce tax liability is to start donating for charity. But
donations that are worth more than $ 250 must have an invoice to be eligible for
deduction.

There are several ethical as well as legal standards that have to be maintained for
taxation. They are as follows:
1) The professional who is doing the tax must coincide his or her client regarding any error
that has been found.
2) The self-estimation process of the tax must be conserved; the client’s interests must be
kept confidential and protected; the tax professional must be responsible for all the duties
in the taxation process.
3) But the decision of removal or omission of the errors lies in the hands of the client.
Sincerely,
[Your Name]
[Your Title]

Bibliography
Ballard-Rosa, C., Martin, L. and Scheve, K., 2017. The structure of American income tax policy
preferences. The Journal of Politics, 79(1), pp.1-16.
Casal, S., Kogler, C., Mittone, L. and Kirchler, E., 2016. Tax compliance depends on voice of
taxpayers. Journal of Economic Psychology, 56, pp.141-150.