ACC 555 Week 7 Discussion Question

Discussion Week 7:

• You are a CPA and a client engaged you to determine the most appropriate choice of incorporating for tax purposes. Evaluate the pros and cons of both C and S corporations and make a recommendation to your client as to which type will minimize tax impacts.  Support your recommendation with examples.  
• Your client changed their mind and now wants to assess an S corporation and Partnership. Evaluate the pros and cons of both partnerships and S corporations, and make a recommendation to your client as to which type will minimize tax impacts.  Support your recommendation with examples.
• Evaluate the tax impacts for shareholders owning an S corporation and predict which income items are most likely to result in a taxable event for the shareholders or an IRS audit. Provide a strategy to mitigate or eliminate the tax impacts and audit risk.

• Slant Company, an S corporation, engaged you to provide tax advice to its shareholders.  Analyze any tax benefits that are unique to S corporations and make recommendations to shareholders as to how they can maximize those tax benefits. Support your recommendations with examples.