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Instructors, training on how to grade is within the Instructor
Center.
Assignment 2: Foreign Persons Trade / Business and U.S.-
Sourced Income
Due Week 4 and worth 200 points
Imagine you are a CPA working as a tax professional. A foreign
client engages you to determine how best for them to invest in a
U.S. startup company that plans to sell automobile parts. The
client’s objective is to avoid or minimize any U.S. taxes that the
foreign investor may incur. Assume that the client is forming this
corporation with several other U.S. citizens.
Using the Internet or Strayer databases, research the rules
related to foreign persons investing in U.S. companies and any tax
implications for the foreign investor.
Write a three to four (3-4) page paper in which you:
1. Based on your research, determine at least three (3) types of
investments in the U.S. company that will most likely trigger a
taxable event for your client and those that are least likely.
Provide support for the rationale.
2. Based on your research, evaluate at least three (3) types of
U.S.-sourced income that your client is most likely to be impacted
by U.S. taxes. Provide support for the evaluation.
3. Recommend the most advantageous type of investment
strategy that your client should take when investing in this U.S.
company and make recommendations for avoiding or eliminating