Question

Please explain the difference between a file memo and a client letter and when each would be used.

Then write a file memorandum or a client letter to a tax-sophisticated client or a client letter to an unsophisticated client based on the following case.

"Sally incurred a 90-mile round-trip commute every day, mainly because she could not get along with her supervisor at the sales office located four miles from her home. Sally works under a one-year contract, and her assignment to the nearer office is affirmed in the current year's contract, but management has allowed her to travel to the further location. How many deductible commuting miles does Sally accumulate on a work day?"

Answer 1

A memorandum which is shortly known as a memo is a precise official note, used to inform, direct or advise the members within the same organisation. However, the business deals with a number of external parties such as customers, clients, suppliers, government agencies, manufacturers, societies, etc. for which a different tool of communication is used, called as a business letter. A client letter refers to a brief message sent by the company to the person or entity, which are outsiders.

Key differences between memo and client letter is explained below :

Basis for Comparison	Memo	Client Letter
Meaning	Memo refers to a short message, written in an informal tone for interoffice circulation of the information.	Letter are a type of verbal communication, that contains a compressed message, conveyed to the party external to the business.
Nature	Informal and Concise	Formal and informative
Exchanged between	Departments, units or superior-subordinate within the organization.	Two business houses or between the company and client.
Length	Short	Comparatively long
Signature	Signature is not required in a memo.	A letter is duly signed by the sender.
Communication	One to many	One to one
Content	Use of technical jargon and personal pronoun is allowed.	Simple words are used and written in third person.

Draft Client Letter to a tax - sophisticated client :

Subject : Deductible miles

Dear Sally,

I appreciate the opportunity to advise you regarding this tax matter. To ensure a complete understanding between us, I am setting forth the pertinent information about the advice that I will be rendering.

I use my judgment in resolving questions where the tax law is unclear or where conflicts may exist between the taxing authorities.

You incurred a 90 mile round trip of which 4 miles will is towards nearner sales office from where she could get along with her supervisor at the sales office .As distane of 4 miles is towards office , you could travel with supervisor and save 4 miles. hence decuctibel commuting miles are 86 miles.

Please let me know if you wish to discuss any of these issues further. I’ve certainly enjoyed working with you on this project and look forward to assisting you in the future when you need tax advice.

Best regards,

Neha