INTERNATIONAL TAX RESEARCH AND PLANNING:

Use the Internet to research foreign corporation branch profits tax and effectively connected income issues in the United States.

Imagine you are a CPA and your foreign client with U.S. operations has requested information on tax advantages and disadvantages of establishing branch operations in the United States versus the use of an agent.

• Create a scenario with at least two specific examples demonstrating the major advantages and disadvantages of either establishing branch operations or using an agent to conduct business in the United States.
• Be sure to provide a recommendation to your client and any applicable tax laws supporting your recommendation.