TAX 650 Milestone Three Assignment

TAX 650 Milestone Three Guidelines and RubricIn this short paper, you will recommend a type of business entity for the client described in the final project. In explaining your recommendation, discuss liabilityissues, tax effects, and the economic impact on the client’s personal returns. Justify your recommendation regarding whether the client’s daughter should havean ownership interest in the new company with details related to the transaction.Specifically, the following critical elements must be addressed:A. Recommend a type of business entity for the client to consider based on your tax research. Consider justifying your recommendation using the code andregulations that relate to the business entity.B. Justify whether or not the client should choose a business entity that has limited liability protection. Be sure to include possible future liability issuesbased on the potential economic impact and appropriate IRS code and regulations.C. Describe the tax effect on the recommended business entity and the impact it will have on the client’s personal tax return. Consider addressing how thebusiness entity affects the completion of the 1040 tax form.D. Evaluate the economic impact on the client’s personal returns based on the recommended entity. Justify why the client would not choose the otherbusiness entities by informing the client of the differences.E. Justify your recommendation regarding the client’s daughter having an ownership interest. Provide details supporting the recommendation taking intoconsideration the jargon and mechanics of the transaction.Guidelines for Submission: Your paper must be submitted as a 2–3-page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinchmargins, and at least three sources cited in APA format.Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) ValueBusiness Entity Recommends a type of businessentity for the client to considerthat is based on tax researchRecommends a type of businessentity but either the cited IRScode and regulations areinaccurate or details are cursoryDoes not recommend a type ofbusiness entity20Limited LiabilityProtectionJustifies whether or not the clientshould choose a business entitythat has limited liability protectionand includes possible futureliability issues consistent with IRScode and regulationsJustifies whether or not to choosea business entity that has limitedliability protection but does notinclude possible future liabilityissues, possible future liabilityissues are not consistent with IRScode and regulations, or detailsare either inaccurate or cursoryDoes not justify whether or not tochoose a business entity that haslimited liability protection20Tax Effect Describes the tax effect on therecommended business entity andthe impact on the client’spersonal tax returnDescribes the tax effect on therecommended business entity andthe impact on the client’spersonal tax return, but detailsare irrelevant or cursoryDoes not describe the tax effecton the recommended businessentity and the impact on theclient’s personal tax return20Economic Impact:Personal ReturnsEvaluates the economic impact onthe client’s personal returns basedon the recommended entity andjustifies response by includinginformation about the otherentitiesEvaluates the economic impact ofclient’s personal returns but doesnot provide justification or detailslack relevance or are cursoryDoes not evaluate the economicimpact of client’s personal returns15Ownership Interest Justifies recommendationregarding the client’s daughterhaving an ownership interestusing details supporting therecommendationJustifies recommendationregarding client’s daughter havingan ownership interest but detailseither lack relevance or arecursoryDoes not justify therecommendation regardingclient’s daughter havingownership interest15Articulation of Response Submission has no major errorsrelated to citations, grammar,spelling, syntax, or organizationSubmission has major errorsrelated to citations, grammar,spelling, syntax, or organizationthat negatively impact readabilityand articulation of main ideasSubmission has critical errorsrelated to citations, grammar,spelling, syntax, or organizationthat prevent understanding ofideas10Earned Total 100%