Constructive Dividends, Redemptions, and Related Party Losses

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.