This assignment is an INDIVIDUAL assignment and due by the final day of the Module.  Submissions should be uploaded to the dropbox in the course. Research assignments should be in proper format of a Client Letter AND Memo.  Citations needed should only be IRS PRIMARY SOURCES.  Submissions that reference non primary sources cannot earn a passing score.
Harold recently was notified by the IRS that he was being assessed a penalty for failure to file a tax return.  Harold was upset that he has to pay this penalty, but has come to you, a CPA for assistance to ensure he is tax compliant moving forward.  Harold believes that the penalty paid for failure to file the tax return is tax deductible.
REQUIRED:
As a staff accountant in the firm hired by Harold, use an official tax research service to research primary source material to determine if this penalty can be deducted.  Communicate your findings in both a work paper memo and client letter as to whether or not Harold can deduct the penalties.