Chapter 2, Problem 12DQ

1. Who is required to file a federal return in Puerto Rico (US Territories) and the United States? Why? 2. Explain the difference between an individual and a company at the time of paying taxes when they file taxes?

Why might the effective tax rate paid on income earned within a country be different from that country’s national corporate income tax rate?

Which statement is true concerning an individual who is a US tax resident and a corporation that is a US tax resident?   A. Both an individual who is a US tax resident and a corporation that is a US tax resident pay US income tax on their Worldwide.   B. An individual who is a US tax resident pays US income tax only on US sources income and very limited foreign source income while a corporation that is a US tax resident pays US income tax on its worldwide income.     C. An individual who is a US tax resident pays US income tax on his worldwide income while a corporation that is a US tax resident pays US income tax only on US source income and very limited foreign source income.   D. Both an individual who is a US tax resident and a corporation that is a US tax resident pay US income tax on their worldwide.   E. Both an individual who is a US tax resident and a corporation that is a US tax resident pay US income tax only on US source income