ACC 547 Week 4 Individual Assignment Tax Law Research Worksheet What are some common legal entities used for operating a business? What types of business entities does the U.S. tax system recognize? What are tax and nontax advantages of business entities recognized by the tax system? What are the statutory requirements of Section 351? What is the definition of control under Section 351? Why does Congress require shareholders to control a corporation to receive a preferential tax treatment? When might a taxpayer not want to meet the requirements of Section 351? What is the process for computing a corporationâ€™s taxable income, assuming the corporation must use generally accepted accounting principles (GAAP) to determine financial income? How might this differ for corporations not required to use GAAP? How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts separate? How does a corporationâ€™s computation of earnings and profits differ based on the tax treatment of a stock redemption as a dividend as opposed to an exchange?