need it ASAP

Suppose you are a CPA hired to
represent a client that is currently under examination by the IRS. The
client is the president and 95% shareholder of a building supply sales
and warehousing business. He also owns 50% of the stock of a
construction company. The client’s son owns the remaining 50% of the
stock of the construction company. The client has received a Notice of
Proposed Adjustments (NPA) on three (3) significant issues related to
the building supply business for the years under examination. The issues
identified in the NPA are unreasonable compensation, stock redemptions,
and a rental loss. Additional facts regarding the issues are reflected
below:

• Unreasonable compensation: The taxpayer receives a
  salary of $10 million composed of a $5 million base salary plus 5% of
  gross receipts not to exceed $5 million. The total gross receipts of the
  building supply business are $300 million. The NPA by the IRS disallows
  the salary based on 5% of gross receipts as a constructive dividend.
• Stock
  redemptions: During the audit period, the construction company redeemed
  50% of the outstanding stock owned by the client and 50% of the stock
  owned by the client’s son, leaving each with the same ownership
  percentage of 50%. The IRS treated the redemption as a distribution
  under Section 301 of the IRC.
• Rental loss: The rental loss results from a building leased to the construction company owned by the client and his son.

Use
the Internet and Strayer databases to research the rules and income tax
laws regarding unreasonable compensation, stock redemptions treated as
dividends and related party losses. Be sure to use the six (6) step tax
research process in Chapter 1 and demonstrated in Appendix A of your
textbook as a guide for your written response.

Write a three to four (3-4) page paper in which you:

1. Based
   on your research and the facts stated in the scenario, prepare a
   recommendation for the client in which you advise either acceptance of
   the proposed adjustments or further appeal of the issue based on the
   potential for prevailing on appeal.
2. Create a tax plan for the
   future redemption of the client’s stock owned in the construction
   company that will not be taxed according to Section 301 of the IRC.
3. Propose
   a strategy for the client to receive similar amounts in compensation in
   the future and avoid the taxation as a constructive dividend.

 Your assignment must follow these formatting requirements:

• Be
  typed, double spaced, using Times New Roman font (size 12), with
  one-inch margins on all sides; citations and references must follow APA
  or school-specific format. Check with your professor for any additional
  instructions.
• Include a cover page containing the title of the
  assignment, the student’s name, the professor’s name, the course title,
  and the date. The cover page and the reference page are not included in
  the required assignment page length.