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ACC 568 Week 2 Assignment 1 client Letter (Foreign Source
Income Rules)

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Assignment 1: Client Letter
You are a CPA professional and are assisting a new client who is
expanding a business that operates in the United States to having a
global presence with operations in foreign countries. The new client
is concerned about how he can mitigate the U.S. tax impact from
revenue sourced in foreign countries. The client was advised by a
friend that claims he did not have to pay any U.S. tax on income
received from outside the U.S.
Use the Internet and your text to research the various rules
regarding source rules for income and deductions.
Write a one to two (1-2) page paper in which you:
1. Construct a letter to communicate to your client about the
source rules for income and deductions and the circumstances that
income received in foreign countries may or may not be taxed in the
U.S.
2. Make a recommendation to the client as to how to mitigate the
U.S. tax impact from income received from outside the U.S. Provide
facts to support your recommendation.