Dr. P is a physician with his own medical practice. For the past several years, his marginal income tax rate has been 37 percent. Dr. P’s daughter, who is a college student, has no taxable income. During the last two months of the year, Dr. P instructs his patients to remit their payments for his services directly to his daughter.

Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.