Land surveying can be performed only by licensed surveyor

Assignment Help Financial Accounting

Reference no: EM131253602

Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern's only business since its incorporation in 2012 has been land surveying services. In Tern's state of incorporation, land surveying can be performed only by a licensed surveyor. Jessica, Tern's only employee, is a licensed surveyor but is not a licensed engineer. Upon audit of Tern's 2012 and 2013 tax returns, the IRS assessed tax deficiencies stemming from its conclusion that the corporation was a personal service corporation subject to the flat tax rate of 35%. Jessica believes that the IRS's determination is incorrect, and she has asked you for advice on how to proceed. Evaluate the IRS's position regarding the treatment of Tern Corporation as a personal service corporation, and prepare a memo for the client files describing the results of your research.

Reference no: EM131253602

Questions Cloud

Write about antibiotic resistance : Write about Antibiotic Resistance (in Lebanon). Organizational analysis - situational analysis, action taken, stakeholder analysis

How much would you owe to bank at that time to pay off loan : You purchase a $25,000 car by making a down payment of $2,000 and borrowing the rest from a bank for 5 years at 1/2 % per month compounded monthly. What will be your monthly payments that are due at the end of each month? After making 36 monthly paym..

Describe the place where the meeting occurs : Describe the place where the meeting occurs... what would make sense, given the personalities involved? Do they meet over lunch? In a court room? When one attends the exhibition of another?

Business decisions and strategies to maximize profit : What's relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit.

Land surveying can be performed only by licensed surveyor : Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern's only business since its incorporation in 2012 has been land surveying services. In Tern's state of incorporation, land surveying can be performed only by a li..

What does an extensive form of this game look like : How would things change if one firm, say firm A, got to see how much firm B produced before launching production itself?

Purpose of the financial statement presentation project : The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation Project? to provide guidance on the application of the acquisition method. to enhance the usefulness of information in assessing the ..

Write a one page essay about the word ecology : Write a one page essay about the word "Ecology". Explain what is Ecology (Banham). Provide examples from the reading. Compare the two points of view of the two authors about Ecology.

Deficiency assessment is proposed for the tax year : Statute of Limitations. In April 2016, Dan is audited by the IRS for the year 2014. During the course of the audit, the agent discovers that Dan’s deductions for business travel and entertainment are unsubstantiated and a $600 deficiency assessment i..

User Account

All Pages