Answer the following plus pick two questions from the list below:

Assume you are a tax adviser and your client is a small business that wants to know how the new tax law impacts them. The couple works together in the business, and file a joint married tax return with net income about $300,000 (gross $450,000, expenses $150,000) and all of it comes from their small business that provides digital programming services. Next year they are going to hire their first two employees. They want to know if it is better to create a pass-through corporation, a regular C corporation, or continue to file their income on the 1040 Sch-C form.

PLUS pick any two questions to discuss:

Option 1 - We American's pride ourselves as being compliant with our voluntary tax compliance system, yet we have the highest tax evasion in the world! it's not uncommon to think of countries such as Brazil or Russia in the top categories, but the US being #1? It's possible, however, that the number is large because our economy is large. Why do you believe that we have such a high level of tax evasion? And what can we do to stop it?

Option 2 - If you recall from earlier in the course, an "aggressive" tax position is where you can interpret the law two different ways - another is where a decision in this area of the law has never been made and you are going to test how far you can go. These methods are legal. However, some taxpayers often decide to make up their own interpretation or completely disregard the tax laws. Does the IRS differentiate between felonies and misdemeanors? What is the difference? Research a tax case example and penalties for each. Does convicting high profile celebrities deter taxpayers from committing tax crimes?

Option 3 - According to the Tax Policy Center, the US has one of the lowest taxes per GDP in the world (we pay very little in taxes as a percentage of our income - compared to the rest of the world), yet everyone seems to "know" that our taxes are too high as compared to the rest of the world - why do you think that is?

http://www.taxpolicycenter.org/briefing-book/how-do-us-taxes-compare-internationally

Option 4 -.Find and read the article on the "Panama Papers" - how are tax shelters outside the US structured?