Thepurpose of this tax research assignment is to help you develop skills in researching tax issues....

Question

Thepurpose of this tax research assignment is to help you develop skills in researching tax issues. Please answerbothof the questions below. The final deliverable for this project will be a written memo which should be at least 2 pages double-spaced, 12 point font, 1” margins.

Mandatory Question #1 (Answer all of the following): What are the primary types of state and local taxes? How would a business determine if it hassalestax nexus and how would the business calculate its businesssalestax withholding responsibilities? How would a business determine if it hasincometax nexus and how would the business calculate its businessincometax withholding responsibilities?

Mandatory Question #2 (Answer all of the following): What is the basis US framework for taxing multinational transactions (i.e., explain outbound and inbound transactions)? What are the US source rules for common items of gross income and deductions? What is the role of income tax treaties in international tax planning? What is the computation for the foreign tax credit and what is the difference betweenallocationandapportionmentin sourcing deductions in computing the foreign tax credit limitation? What are some advantages and disadvantages of the different forms of doing business outside of the US? What is the basic US anti-deferral tax regime and what are common sources of subpart F income?

tax-memo-multi-state-and-interantional-rubric-uauxqxj0.pdf

Prince · Accepted Answer

Question 1: 
Primary types of state & Local Taxes: - 
· Personal income tax
· States sales tax
· Property tax
· Fuel tax
· Inheritance and estate tax
· Corporate income tax
Nexus refers to a connection or relationship between a taxing authority as well as a business. Businesses are required to collect and remit sales tax to the taxing body. Before the taxation authority can charge taxes to a business, there must be a connection between the two. Murray (2020) asserts that a company may have sales tax nexus if it has one or more of the following: a) a physical location within the state; b) employees who are residents of the state and regularly solicit business within the state; c) property, including intangible property; or d) employees who are employed by the company.
Similar to sales tax nexus, income tax nexus is established depending on whether a company has (1) income from sources within the state, (2) ownership or leased property there, (3) capital assets or property there, and (4) personnel who conduct business there. The structure of the business has an impact on how business income tax is calculated (Murray, 2020).
Question 2: 
When a US citizen engages in a transaction that originates abroad or involves a foreign national, the transaction is referred to as a multinational transaction outbound. For instance, a US citizen may make money abroad.

Thepurpose of this tax research assignment is to help you develop skills in researching tax issues. Please answerbothof the questions below. The final deliverable for this project will be a written...

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