Income Taxes and the IRS Present Challenges for All Businesses

Income taxes and the IRS present challenges for all businesses, and it is crucial to have accurate calculations at all times. This scrutiny increases as a company becomes more global. If a company has divisions in more than one country, then it is known as a multinational company. When one division crosses national borders, international tax implications arise. Which of the following represents a challenge that is unique for multinational corporations?

A) Having inbound transactions that are originated by a U.S. based parent company
B) Having outbound transactions that are originated by a foreign parent company
C) Having to navigate the tax regulations of multiple countries as a buyer and seller
D) Having to file corporate tax documents with the Internal Revenue Service