ACC307 Federal Taxation "Temporary Regulations" Please respond to the following (One Paragraph):...

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ACC307 Federal Taxation "Temporary Regulations" Please respond to the following (One Paragraph): You have been assigned a research project for a new client on the issue of tax compliance. The research...

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ACC307 Federal Taxation

"Temporary Regulations" Please respond to the following (One Paragraph):

You have been assigned a research project for a new client on the issue of tax compliance. The research results for the client fall under a temporary regulation. Evaluate and describe two (2) types of temporary regulations and explore the effects on the taxpayer. Discuss the weight of the temporary regulation and what issues may strengthen or weaken the temporary regulation.

Answered Same Day Dec 26, 2021

Robert · Accepted Answer

Two activities that affect the new client who is looking to invest in US: 
1) Commercial activities (temporary regulations)- 
This regulation states that any activity (whether within or outside the United States) 
which is conducted by the taxpayer or by any other person with a view 
towards generation of income are commercial activities. An activity may be considered 
a commercial activity even if such activity does not constitute the conduct of a trade or 
business in the United States under section 864(b). 
2) Foreign currency guidance under section 987 (temporary regulations)- 
As per this notice, taxpayers will not be able to recognize section 987 losses as a result 
of filing retroactive check the box elections.
Temporary regulations have the same authority as final regulations, but they must 
expire within three years But a temporary regulation will never become a final 
regulation, but will simply expire,

ACC307 Federal Taxation "Temporary Regulations" Please respond to the following (One Paragraph): You have been assigned a research project for a new client on the issue of tax compliance. The research...

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