IF YOU WERE THEIR TAX ADVISOR, WHAT WOULD YOU RECOMMEND?

21 May IF YOU WERE THEIR TAX ADVISOR, WHAT WOULD YOU RECOMMEND?

ACC 455 Corporate Taxation Complete Course

Week 1

Individual Tax Return Position Paper

Suppose you have a concern about taking a particular position on a tax return.

Write a 700- to 1,050-word paper that discusses the following:

What are the primary sources of tax law?

What are the secondary sources of tax law?

What is substantial authority?

What is the role of the courts and the Internal Revenue Service in interpreting and applying the sources of tax law?

Format your paper consistent with APA guidelines.

Discussion Questions

What business entities are available for a new business? What are the tax and nontax advantages of each form? Select two business types and provide an example of when that selection is most appropriate from a tax perspective and from a nontax perspective.

Once a business has elected its tax status using check-the-box regulations, what options are available if it needs to change its tax status? What should a business consider before electing to change its tax status?

Do the following decisions have the same precedential value: (1) Tax Court regular decisions, (2) Tax Court memo decisions (3) decisions under the small cases procedure of the Tax Court? Why? Which of the following sources do you think would be most beneficial for your client: (1) Tax Court regular decisions, (2) Tax Court memo decisions, (3) decisions under the small cases procedure of the Tax Court, or (4) Fifth Circuit Court of Appeals?

Week 2

Individual Week Two Problem Set

Complete the problems found in Ch. 2 of Prentice Hall’s Federal Taxation 2010: Corporations.

C:2-3 Black LLC

C:2-54 Bear Corporation

C:2-55 Wildcat Corporation

C:2-56 Tax Strategy for Wildcat Corporation

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft® Excel®, a Microsoft® Word, or a PDF document.

Discussion Questions

What methods of accounting are available to a small business and to a large business? If the business decides to make an accounting methods change, how is this accomplished?

What are the requirements for the following deductions: U.S. production activity deduction, dividend received deduction, and net operating loss? Discuss any recent legislative changes

What is the legislative intent behind the corporate alternative minimum tax (AMT)? Define tax preference items, AMT adjustment, and minimum tax credit.

Week 3

Learning Team Week Three Problem Set

Complete the problems found in Ch. 3 & 5 of Prentice Hall’s Federal Taxation 2010: Corporations with your Learning Team.

C:3-3 Discussion Question – Case Scenario on Tax Elections (Ch. 3)

C:5-8 Discussion Question – Identify Items as AMT Adjustment or Preference (Ch. 5)

C:3-37 Problem – Charitable Contributions of Property (Ch. 3)

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft® Excel®, a Microsoft® Word, or a PDF document.

Discussion Questions

How does a corporation compute earnings and profits (E&P)? What income is deferred to a later year when computing taxable income but is included in E&P in the current year? What deductions are allowed for taxable income purposes but denied for E&P?

The corporation owns a building with a $160,000 adjusted basis and $120,000 fair market value. The company has earnings and profits of $200,000. Is it more advantageous for the company to sell the property and distribute the sales proceeds to its shareholders or distribute the property to its shareholders and let them sell the property? Why? If you were a shareholder, what would be most advantageous to you

What is a stock redemption? What are some reasons for redeeming stock? Why are some redemptions treated as sales and others as dividends?

Week 4

Individual Week Four Problem Set

Complete the problems found in Ch. 4 & 6 of Prentice Hall’s Federal Taxation 2010: Corporations.

C:6-5 Discussion Question – Tax consequences of distributions (Ch. 6)

C:4-29 Problem – Current E&P Computation (Ch. 4)

C:4-52 Problem – Comparison of Dividends and Redemptions (Ch. 4)

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft® Excel®, a Microsoft® Word, or a PDF document.

Learning Team Week Four Tax Return

Complete the tax return found in Ch. 3 of Prentice Hall’s Federal Taxation 2010: Corporations with your Learning Team.

C:3-64 Tax Form /Return Preparation Problem – Knoxville Musical Sales Inc. Tax Return Preparation (Ch. 3)

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft® Excel®, a Microsoft® Word, or a PDF document.

Discussion Questions

Sue and Bill plan to open an accounting firm and expect to work full time in the firm. They expect to incur a small loss during their first year of operation and expect to be profitable after the first year. What are the tax law requirements for structuring the business as a partnership or an S corporation? Which would you recommend and why?

What are separately stated items on a K-1? Why is it necessary to separate these items from ordinary income?

What is the difference between a distribution and a distributive share? How do these affect the owner’s K-1 and individual taxes?

Week 5

Learning Team Week Five Problem Set

Complete the problems found in Ch. 9, 10, & 11 of Federal Taxation 2010: Corporations with your Learning Team.

C:9-32 Problem – Partnership Income and Basis Adjustments (Ch. 9)

C:11-37 Problem – Determination of Pass-Throughs and Stock Basis Adjustments (Ch. 11)

C:10-1 Discussion Question (Ch. 10)

C:11-31 Problem ­­– Termination of the Election (Ch. 11)

C:11-56 Comprehensive Problem – Comparison of Entity Formations (Ch. 11)

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft® Excel®, a Microsoft® Word, or a PDF document.

Discussion Questions

What is a liquidating distribution? What is a nonliquidating distribution? Provide an example of each.

What is an inadvertent termination of an S election? How does an S corporation and its shareholders rectify an inadvertent termination? What could happen if a company fails to rectify the termination?

A C corporation has incurred substantial losses and the owners have decided to close the business. What considerations should the owners make in this termination? Should they consider making an S election and then later, terminating the S corporation? If you were their tax advisor, what would you recommend?