CASE STUDY – Providing Tax Consulting Services to a Married Couple

Initial Facts: Assume it is still September 1, 2020. Jim and Jane were married last year, in
November of 2019. On the advice of their current CPA, to maximize a tax refund, they would
like to file a joint tax return on or before October 15, 2020. They have made an appointment to
see you for a second opinion on their filing status for 2019, as well as their filing status going
forward.
Jim is a real estate broker and operates his business through an S-corporation. Jane has a
bachelor’s degree in accounting and works as an auditor for the County of Los Angeles. Jim’s
corporation’s profit and loss statement shows a profit of $40,120 for 2019. Jane’s salary in 2019
was $75,000.