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Marketing Objectives

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Chapter 2 Research Problems

(1) What are the key facts in each of the 3 problems?
(2) What is the general issue to be addressed?
(3) What key words would you use to research this question?
(4) Use online tax research tools to answer the question. (Several are listed in Chapter 2.)
(5) What important information would you include in a memo/letter to the “client” to communicate the results of your research?

Please type your answers below. Be concise but thorough enough.
Use proper citation on each question as discussed in Chapter 2.

#1: Shaun is a huge college football fan. In the past, he has always bought football tickets on the street from ticket scalpers. This year, he decided to join the university 's ticket …show more content…

Because the miles redeemed were for a free airline ticket. Latrell did not cnvert the miles to cash; So there is no taxable income from the transaction.

(4) About the IRS Announcement 2002-18

The IRS Announcement 2002-18 states “these promotional benefits may generally be exchanged for upgraded seating, free travel, discounted travel, travel-related services, or other services or benefits. Inquiries centered on the taxability of frequent flyer miles or other promotional items that are received as the result of business travel and used for personal purposes. There are numerous technical and administrative issues relating to these benefits on which no official guidance has been provided, including issues relating to the timing and valuation of income inclusions and the basis for identifying personal use benefits attributable to business (or official) expenditures versus those attributable to personal expenditures. Because of these unresolved issues, the IRS has not pursued a tax enforcement program with respect to promotional benefits such as frequent flyer miles. Consistent with prior practice, the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer’s

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