What is congress trying to achieve

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Problem

In relation to Subchapter S, commonly referred to as S-Corporation, discuss the concept of non-separately stated income or loss, and separately stated income, deductions, and credits. For Congress to come up with something this confusing, you know there must have been a good reason (or at least we'd like to think so!). Think about the concept for a moment. What is the broad tax policy behind separating these two categories of income? What is Congress trying to achieve? What problems does it prevent? What problems does it cause?

Reference no: EM131970550

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