Business Paper-Addendum to Risk Management Plan

Addendum to Risk Management Plan

A staff tax accountant has come to you for advice. She has begun a tax return and does not know what to do with the expenses that the client has submitted as itemized deductions. She is unsure which expenses are allowable and should be included on her Schedule A. Review the expenses submitted by the client below. (Note: The client’s AGI is $45,000.)

Client submitted expenses:

Personal property taxes

$ 500

Reimbursed health insurance premiums

$ 1,500

Charitable contributions (cash only)

$ 200

Prescriptions

$ 150

Mortgage interest

$ 3,850

Contact lenses

$ 200

State income taxes withheld

$ 1,675

Unreimbursed medical expenses

$ 875

Services provided to a qualified nonprofit

$ 1,000

Real estate taxes

$ 850

Using the client submitted expenses above, complete the following:

• List the allowable expenses.
• Assist your staff with the completion of the Schedule A tax form for the most recent tax year.
• For each expense not allowed, please explain why it is disallowed.

To obtain the most recently revised Form 1040 (Schedule A), follow these instructions:

1. Go to http://www.irs.gov/app/picklist/list/formsInstructions.html
2. In the Find box, type 1040 (in product number) and click “Find”
3. Scroll down to Form 1040 (Schedule A&B), titled Itemized Deductions and Interest & Ordinary Dividends
4. Complete Schedule A only. You do not have to complete Schedule B.

Please submit your assignment.

 

One of the risks you anticipated for the project was the late delivery of the prototype from the vendor. You adjusted your project schedule to minimize the impact of the risk, built in a penalty for late delivery, and created action plans in case the vendor delivered late. You also identified a risk with the vendor that they have very little technical depth; if the key engineer is not available to your project, the risk of a delay is even greater. You determined how you would monitor the vendor’s performance and ensure a timely delivery. You took a very risk-averse, protective approach to the relationship, but now, as the project is progressing, you are wondering if there is something you could do with the vendor to actually benefit the project instead of just protecting it.

Assignment Guidelines:

Create a 1-page addendum to your risk management plan that describes how you will modify the plans or create new plans relative to that vendor to create an opportunity that will result in lower costs, earlier delivery, higher quality, or other positive impacts.

Also, answer the following questions:

• What can you change in your plans to create an opportunity?
• What would that opportunity be?
• What is the probability that this opportunity could occur? What is the impact?
• What are the risks (adverse effect) that are introduced by this change in plans?
• How will you communicate this change to the vendor?

Your submitted assignment (200 points) must include the following:

• A 1-page addendum
• A 2 to 3 page document answering the questions above
• Submit both files as 1 zipped document to the drop box