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.

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.