Jane owns 100% of the stock of Lacy Corporation. Jane's son, Lee, is employed by Lacy Corporation as a consultant. Which of the following concepts or doctrines is least helpful in determining the tax consequences of any payments Lacy makes to Lee?

Question

Quizplus · Accepted Answer

The Entity Concept is least helpful in this context because it primarily deals with the distinction between the business entity and its owners for legal and tax purposes, rather than the specifics of transactions between the company and its employees or consultants. The other options (Arm's-Length Transaction Concept, Substance Over Form Doctrine, Assignment of Income Doctrine, and Business Purpose Concept) are more directly relevant to analyzing the tax implications of payments made to an employee or consultant, especially in situations involving related parties.

Jane Owns 100% of the Stock of Lacy Corporation