Is the new provision more favorable or less favorable to the taxpayer?
Review the IRS webinar on Tax Reform Basics for Small Entities and Pass-Through Entities at https://www.irsvideos.gov/Business/FilingPayingTaxes/TaxReformBasicsSmallBusinessesAndPassThroughEntities (you may have to copy and paste the link into your browser). The video highlights several provisions of the Tax Cuts and Jobs Act (TCJA) that impact small entities and pass-through entities. Pick one of the tax changes highlighted in this webinar and explain to a client how it differs from pre-TCJA law. Is the new provision more favorable or less favorable to the taxpayer?Be sure to support your comments with information you find in the library or in the IRS code.
*Do not forget to respond to the other topic this week.
You are negotiating a transaction on behalf of one of your clients, Blair Burke. During the negotiationyou become aware that the other party to the transaction does not adequately understand the tax consequences of the proposed transaction, which are highly favorable to Burke. In fact, if the transaction were completed as proposed, the other side would suffer significant negative tax consequences. Ethically, should you inform the other party of the potential negative tax consequences of the proposed transaction?Be sure to support your comments with information you find in the KU library and/or in the IRS code.