- Assignment 2: Foreign Taxpayers Engaged in a Trade or Business in the U.S.
Imagine you are an international tax consultant with a foreign client seeking to invest capital in the United States to take advantage of the growing economy. The foreign client is trying to evaluate alternative forms of business to maximize available tax benefits. Keep in mind that the client is requesting advice on the best methods to avoid or reduce taxes on income from the investment in a new business with other U.S. investors.
Use the Internet and / or Strayer Library to research the rules related to foreign taxpayers engaged in a trade or business in the U.S. and the related tax effects.
Write a three to four (3-4) page paper in which you:
- Based on your research, identify at least two (2) methods of conducting business in the U.S. for your client, and compare the tax advantages and disadvantages of each that would have the greatest impact on the business. Provide examples to support the advantages and disadvantages identified.
- Examine at least three (3) categories of U.S. sourced income that will generate U.S. taxes for your client. Provide support for your results.
- Provide two examples from within the last 3 years of how foreign capital investors were able to avoid or reduce taxes on income from their investments. Analyze the impact of the Tax Cuts and Jobs Act on each of your examples.
- Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar websites do not qualify as quality resources.
- Format your assignment according to the following formatting requirements:
- Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
- 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.
- 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.
- Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.