Part 1

Sam and her husband John, were very creative- They turned their little company (a C Corporation) that was ready to close down, and realized their machinery could produce equipment (PPE) and face masks for hospitals, health care workers and consumers. The company made over $2,000,000 this year through July 31st. This will all be taxable income.

You will suggest to Sam and John in a well drafted letter what they might do before the end of the year to reduce their tax liability. Among your suggestions (and you may have others of your own) is that they meet Ethan who has worked for a company for over 30 years that designs and develops research and development tax credits that reduce taxable income.

1. Explain to Sam and John how these credits work

2. How are the amounts determined

3. What are your authorities (primary and secondary) that make you feel comfortable (OR NOT!) and explain the authorities

Part 2

Even with all your help, Sam and John still had a tax bill for 2019 to pay of $350,000 in April 2021. And once the Pandemic wound down, and other companies produced the same products, their business suffered and they have no money to pay their tax liability and they won’t in the foreseeable future. They do have to file a tax return by April 15th, 2021 and the tax will be due. What suggestions can you make to them?

If you need answers to this assignment, WhatsApp/Text to +1 646 978 1313  

or send us an email to admin@shrewdwriters.com and we will reply instantly. We provide original answers that are not plagiarized. Please, try our service. Thanks