Tax Problem

Research Assignment 308 Spring 2017 Professor Petruzzi

Your client is the Sleazy Palace Casino, Inc. which began operations in January 2016. During its first year of operations, the casino had net income of $9,000,000, not counting the markers of its customers. Markers are debt to the casino for which the customer signs an agreement to pay, similar in form to a check. If the markers are counted, the net income is $11,000,000. The casino is located in Nevada, and Sleazy Palace Casino, Inc. is a Nevada corporation.
It has not yet filed the tax return for 2016, and no accounting decisions have yet been made by the casino, but the owners state that they would prefer to not recognize the markers as income. Write them a letter discussing this problem and consider the alternatives of cash and accrual accounting methods. The letter should be between three and five pages typewritten and double spaced with a 12 point font.
Your grade will mostly be based on your identifying issues in tax law and citing and explaining sources of law (court cases and/or sources written by Congress, Treasury, and the IRS).
Use Intelliconnect (CCH) to find your sources. From the CSUF Portal access the Titan Library and then go to databases. Then, indicate Intelliconnect. You may need to re-enter your user ID and password after connecting to CCH.
It should be from 2 to 5 pages double spaced in 12 point font. Please cite sources within your text or as footnotes on the bottom of each page (as opposed to putting them at the end of your paper). Please put your name and your class time along with the title, etc. on the cover page (which does not count as one of the two to five pages). Please only turn in paper with no plastic cover.