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April 1, 2021

John Jones, the CFO for Smith Manufacturing, has approached you about
changing the tax filing status. Currently, the company files the tax return as
a C-Corp. He is inquiring as to whether it should be changed to an S-Corp.

Prepare a memo to Mr. Jones that discusses the legal and tax implications of
making the change. Be sure to cite your findings with appropriate laws and tax
code.
 
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