“Tax Credit Limitations” Please respond to the following:
- Based on the e-Activity, research the limits on foreign tax credits. Based on your research, propose how you would categorize tax credits for reporting purposes to IRS.
E-Activity: Go to the Internal Revenue Service Website, located at http://www.irs.gov, to search and read the latest filling year’s “Publication 514”, specifically reviewing the section on tax credit limitations.
- Propose how you would defend a client against an IRS audit of tax credits that were incorrectly categorized.
Please make sure that the bullet point and solutions are together and its at least a paragraph or two long.