Tax Credit Limitations

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“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.

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