Stanford University Business Planning Discussion

Description

For this week’s discussion, choose 1 of the following topics and post your initial response in the Discussion Board.

The Tax Cuts and Jobs Act of 2017 changed the C Corporation tax rate to 21%. Many believe that if the business owner’s marginal tax rate is higher than the corporate rate the owner should reorganize their business as a C corporation. How would you respond?

International Financial Reporting Standards, a widely used set of accounting principles, does not allow the use of the LIFO inventory costing method. Explain the reasons for disallowing this method and discuss the tax impacts a change from LIFO to FIFO would have on a business.

S Corporation owners have attempted to avoid employment taxes by distributing earnings instead of making payments through payroll. Discuss how the IRS has attempted to mitigate this and the issue accountants may face with regards to what is considered reasonable compensation for services.