Explain the tax treatment for your business


Assignment: Tax Periods and Method

Imagine that you were able to acquire enough capital to start the business venture of your dreams. According to a report from the Global Entrepreneurship Monitor (GEM) in 2018/2019 (you can download the report), there is an increase in the amount of people starting or running new businesses in the US. The international figures are on page 17 of the same report.

Write an eight to ten page paper in which you:

1. Present a proposal for a start-up sole proprietorship business that would be of interest to you. Indicate the type of company you would create, its business objectives, and other factors that you believe are important to the success of this type of business.

2. Indicate which accounting method you will use for your start-up. Explain how this method would minimize the tax liabilities for the company. Provide support for your rationale.

3. Choose a foreign country where you could establish an identical business. Based on your selection in Question 2, propose two accounting benefits that your company would enjoy by operating in a foreign country. Indicate any significant tax consequences that may result from the method you proposed.

4. Explain the tax treatment for your business when you report the income generated from your operation in the foreign country. Provide specific rules and regulations the IRS has in place to calculate how taxes are determined when foreign operations are present.

5. Imagine you have decided to change the accounting method you chose after three years in business, as you have discovered that another method would be more advantageous from a tax perspective. Analyze the rules regarding changes in accounting methods and then create a table that illustrates the effect of changing the accounting method on three of your business' unique transactions.

6. Develop an argument that supports your proposed accounting method change. Create a letter to the IRS to justify your position.

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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