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Problem 2Two officers of Corporation B disguised dividends as commissions and thus lowered the income tax on Corporation BÃ¢â‚¬â„¢s corporate income tax return. Their objective was to reduce the possibility that of governmental regulation for having Ã¢â‚¬Å“windfall profitsÃ¢â‚¬Â; although their intent was not to evade taxes, they were aware that characterizing dividends as Ã¢â‚¬Å“commissionsÃ¢â‚¬Â would reduce taxable income. Officer 1 changed the accounting records so that the dividends were reclassified as commissions and took the records to the tax preparer. Officer 2 did nothing except encourage Officer 1 to do what he did. Can Officer 2 be charged with any wrongdoing since he didnÃ¢â‚¬â„¢t commit an overt act? Required: For the above situation, provide the code sections under Title 26 and Title 18 that you believe are applicable and give brief reasons for each charge you recommend. If you believe a section is appropriate but do not believe the taxpayer is likely to be found guilty under that section, please briefly state the reason(s) you believe the taxpayer is unlikely to be found guilty. (Please avoid using a Ã¢â‚¬Å“scattergunÃ¢â‚¬Â approach, i.e., listing sections in hopes that they will Ã¢â‚¬Å“stickÃ¢â‚¬Â.)
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