Income Tax Return

The accountant for George’s Software, Inc. “George’s”) has approached you for some tax advice about how to handle an item on the income tax return for the business. The business is an S corporation. The corporation is a calendar year end, cash basis taxpayer. The business recently redeemed 23% of the shares from a shareholder Robyn Harley (“Harley”). As part of the transection George’s and Harley entered into a Covenant Not to Compete (“CNC”).The CNC is for a period of one year and is in relation to customer contracts and relationships.

The accountant needs advice for the following:

1.Which code section of the Internal Revenue Code covers the deductibility of a CNC for George’s?

2.What is the normal period for deducting the costs of a CNC for federal income tax purposes?

3.Is it possible to deduct the costs in accordance with the term of the CNC, i.e. one year in this case?

You research should consider the following (but it is not an exhaustive list):

Recovery Group, Inc., 652 F.3d 122 (1st Cir. 2011)

Your responsibility: Prepare a tax research memo addressing the question that has been raised. Please note that if the tax memo is not in the required format and/or contains very little analysis you will receive a zero (0) for the assignment. All good faith efforts are capable of receiving a minimum of 60% but less than a good faith effort will be awarded zero points.

You will need to support your conclusion using primary sources of tax law. Your textbook is NOT primary authority nor are IRS Publications

You must use proper citation form in your memo (see Chapter 2 for help with citation form). The form for this communication should be professional and in the form of a tax research memo (example posted on Blackboard and a similar example in your textbook). Do yourself a favor and look at the grading rubric before you submit.

This memo should be whatever length you feel is appropriate to resolve the issues. We do NOT use a bibliography or list of references in a tax research memo. We do not include Background in a tax memo. You will see that citations are within the text of the document in the example. Once a court case has been cited in full, it can be referred to using simply the name in italics.

You are required to INDIVIDUALLY prepare this document. Please upload your memo to Canvas before the due date and time. TurnitIn will be used to check for plagiarism.

The grading rubric for Tax memos is posted in Canvas. For this assignment, points are distributed as follows:

Aspects of the memo

Points Content – facts and issue(s) 16

Content – analysis 30

Content – conclusion 14

Organization 8

Audience 8

Style 8

Mechanics 8

Referencing 8

Total 100

Essay Research Paper
Calculate your paper price
Pages (550 words)
Approximate price: -

Why we are the best

Best Quality Written Papers

Our writers are trained to read and research widely before writing a paper. This ensures that we have the best end product the gives clients the best grades in class.

Qualified and Experienced writers and editors

Once you place your order, we look for writers who match your requirements. All our writers are highly qualified, but we have to make sure the writers handling your papers understand the field very well.

Free Unlimited Revisions

We understand, at some point, the writer might miss a few points, either through error or omission. In such a case, your paper will be revised, free of charge until you get the best quality.

Timely Delivery and 100% Money-Back-Guarantee

Papers are finished before deadline to enable clients have enough time to peruse and read through and see if any amendments are required. If for one reason we cannot meet the deadline, we ask the client for extension, and if not possible, 100% of the money paid is refunded.

Original & Confidential

We have a team of experienced writers who do original papers, without plagiarizing. We also use several tools to make sure the papers are original. We also make sure that we keep client’s information confidential. No third party can access the details of clients.

24/7 Customer Care

You can reach our support team, any time, any day for all round support and assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Ask For Help

It does not only have to be a paper you do not understand that you seek help, but if you have a tight schedule and homework has to be done, we are here to help you.


Essay Writing Service

Urgency, academic level or complicated papers should not be an issue to you. This is our specialty. Place your order, get in touch with the support team for any assistance, and let our team provide the best quality papers.


Admission Essays

You want to apply to your dream college and you have no idea how to go about it? We will help you write an admission letter that will guarantee you admission to the college.


Editing and revision papers

You might have done your paper, and you want it polished, or you failed and want it revised, our pool of professional editors will help you achieve the best.


Article/Book Review Services

One of the most challenging academic works is article/book reviews. You no longer have to worry about this subject area. We have an able team that will give the best reviews for your work.