Lesson 1—Objectives

After Lesson 1, students should be able to:

1.	Identify various tax regimes in the Internal Revenue Code for taxing business income and describe how income is taxed under each.

2.	Identify the corporation as a taxable entity and describe when the corporation (as opposed to its shareholders) will be taxed as the earner of business income.

3.	Describe when and when not “entities” recognized by the code may elect the manner in which they will be taxed, and the operation of the entity classification election (check the box) rules.

4.	Describe the factors from case law and regulations that have historically distinguished corporations, partnerships and trusts.