ip5.docx - Individual Project Phase 5 Managerial Decisions Martha Constance Taxation and Business Decisions(ACCT618-1901B-01 Doctor Ralph Palumbo To

ip5.docx - Individual Project Phase 5 Managerial Decisions...

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Individual Project Phase 5 Managerial Decisions Martha Constance Taxation and Business Decisions (ACCT618-1901B-01) Doctor Ralph Palumbo September 20, 2019
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To: Chief Executive Officer of Jefferson Industrial Machines Date: September 19, 2019 From: Martha Constance Subject: Fiscal Year Change Jefferson Industrial Machines currently is using a calendar year for their tax accounting period. I understand JIM has decided to change their fiscal year to April 1 st to March 31 st . The change is due to sales being seasonal. It would make sense to change to a fiscal year because they make their money during seasonal times like Christmas, because they make most of their profit during their season. By changing to a fiscal year, they can move the date for enough to include all their seasonal sales. As the tax analysis for JIM, I will explain how this decision can affect the current calendar year taxes. We will also go over the tax laws and rules required to make the tax accounting period change. One specific detail to consider when making the change and can determine the IRS requirements is that the company is a C corporation. Each type of corporation has different requirements when changing their tax accounting year[ CITATION Joh191 \l 1033 ]. The Tax Cuts and Jobs Act (TCJA) was enacted to benefit corporate taxpayers[ CITATION Joh191 \l 1033 ]. The TCJA allows for a lower corporate tax rate and change to the corporate tax deductions and tax credits that are beneficial for corporate taxpayers[ CITATION Joh191 \l 1033 ]. The TCJA replaced the prior tax law that had the corporate rate
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  • Fall '17
  • Taxation in the United States

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