Accounting Assignment | Custom Assignment Help

Suppose you're a CPA employed to characterize a consumer that's at present below examination by the IRS. The consumer is the president and 95% shareholder of a constructing provide gross sales and warehousing enterprise. He additionally owns 50% of the inventory of a development firm. The consumer’s son owns the remaining 50% of the inventory of the development firm. The consumer has obtained a Discover of Proposed Changes (NPA) on three (three) important points associated to the constructing provide enterprise for the years below examination. The problems recognized within the NPA are unreasonable compensation, inventory redemptions, and a rental loss. Extra info concerning the problems are mirrored under:

Use the Web and Strayer databases to analysis the foundations and earnings tax legal guidelines concerning unreasonable compensation, inventory redemptions handled as dividends and associated occasion losses. Make sure you use the six (6) step tax analysis course of in Chapter 1 and demonstrated in Appendix A of your textbook as a information in your written response.

Write a 4 (four) web page paper during which you:

  1. Primarily based in your analysis and the info said within the situation, put together a suggestion for the consumer during which you advise both acceptance of the proposed changes or additional attraction of the problem primarily based on the potential for prevailing on attraction.
  2. Create a tax plan for the longer term redemption of the consumer’s inventory owned within the development firm that won't be taxed in line with Part 301 of the IRC.
  3. Suggest a method for the consumer to obtain comparable quantities in compensation sooner or later and keep away from the taxation as a constructive dividend.
  4. Use not less than 5 (5) high quality educational assets on this task. Observe: Wikipedia and different Web sites don't high quality as educational assets.

 Your task should observe these formatting necessities:

 The precise course studying outcomes related to this task are: