Assignment 1: Foreign Source Income Rules (Client Letter)

Due Week 2 and worth 140 points

For Assignment 1, choose a company that is of interest to you that operates both in the United States and internationally. Imagine that you are a CPA working to provide tax advice to this company. The company has specifically requested information on strategies that they can use to minimize the tax effects of foreign sourced income.

Use your text, the Internet, and / or Strayer Library to research the various rules regarding source rules for income and deductions. 

Write a one to two (1-2) page paper in which you:

  1. On a separate page between the cover page and the Client Letter, provide some basic information on the company you selected, along with a brief rationale for why you selected this company. Note: This summary does not count toward the required page length.
  2. In your letter to the company you selected, outline the source rules for income and deductions and the conditions under which income received in foreign countries may or may not be taxed in the U.S.
  3. Present a proposal to the client as to how to reduce the U.S. tax impact from income received from outside the U.S. Provide details to support your proposal.
  4. Use at least two (2) quality resources in this assignment. Note: Wikipedia and similar websites do not qualify as quality resources.
  5. Format your assignment according to the following formatting requirements: 
    1. Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
    2. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page is not included in the required page length.
    3. Include a reference page. Citations and references must follow APA format. The reference page is not included in the required page length.

The specific course learning outcomes associated with this assignment are:

  • Analyze how foreign persons are taxed on income generated in the U.S and the application of the source rules to international taxation.