(PLEASE NOTE THREE DIFFRENT ANSWERS POSTED CHOOSE ONE)
1) "Tax Credit Limitations" Please respond to the following:
• Based on the e-Activity, research the limits on foreign tax credits. Based on your research, propose how you would categorize tax credits for reporting purposes to IRS.
• Propose how you would defend a client against an IRS audit of tax credits that were incorrectly categorized.
2) "Policy Considerations" Please respond to the following:
• Congress has appointed you to head a committee to address the complexity of foreign tax credit limitation rules that currently exist. Make recommendations to simplify the rules. Support your recommendations with examples.
• Based on your recommendations from above, predict the impact your recommendations would have on U.S. Treasury tax collections. Support your prediction(s) with examples.