Minimizing Tax Obligation in the USA - Essay Example

Auditing strategies by internal revenue service to remit the appropriate amount of tax

The IRS has its strategies of detecting whether a corporation is remitting the appropriate amount of tax either through office or field examination. The filed examiners would visit the business strategy and determine the amount of tax payable. During such visits, they conduct auditing interviews and run tax reports (Barney, 2008; PWC, 2008). If the additional tax is found, the team will inform the corporation and require them to sign the tax report. However, the corporation may decide to decline signing until they go through the report and verify the details.

Does US tax policy deter foreign investment?

The tax policy is not prohibiting foreign investment but rather enhancing transparency in financial dealing. The USA tax policy especially on the transfers, states that every exchange of property must be subjected to taxation under sections 351 and 361(Barney, 2008; PWC, 2008). The corporations are required to declare in the form what details of the property are transferred.