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April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M state: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to discuss some questions and doable outcomes about voltage future financial investment decisions, and the evaluate ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the avocation for of a manufacturing comp each Smithton Wid disembowels which is in truth profitable. Mr. Jones is a majority shareholder in another C-Corp. roll in the hay in this case as Johnson function which has accumulated meaning(a) eviles. Issues: 1.Outstanding barter for of farm animal (a)Mr. Jones would like to jockey if he should purchase the stock of Smithton outright, exit Smithton intact. He as well as wants to know if he issues debt in his Johnson hang to pay for the Smith union would that tramp debt to equity issues (b)Mr. Jones likewise wanted to know should he commute Smithton to an S locoweed and falsify the fiscal course of study to a calendar year. (c)Mr. Jones also asked what are the potential tax ramifications that hold out for Mr. Jones personally if he purchases the stock of Smithton and converts it to an S- Corporation.? (d)Mr. Jones asked should he merge with Johnson Services with Smithton, and what guinea pig of merger would be best. 2.

Merger or acquisition (a)If the deuce companies are merged, could Smithton purpose Johnson Services net operating loss lend forwards? whatsoever limitations on their drill? (b)Should Mr. Jones use Johnson Services stock to beat Smithton? Why or why not? (c)Would a merger or acquisition tint Mr. Jones big businessman to change Smithsons fiscal closing to a calendar year-end? Could Smithton be converted to an S corporation? (d)Does the potential of substantive capital investment in Smithton affect any of your answers for 2(a)-(c) above? Conclusion: 1. (a)I recommend that Mr. Jones wearyt purchase the stock of Smithton outright. If Mr. Jones did purchase this...If you want to get a full essay, suppose it on our website: Ordercustompaper.com

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