Transfer Pricing Impact

• Transfer pricing is a significant area of concern for the IRS. Assess the concerns the IRS may have and construct a scenario to address those concerns. ;
• The IRS requires that transfer pricing transactions are done at arm’s length. Propose a strategy for managing transfer pricing transactions that would prevent or mitigate the chance of an IRS challenge.

Please make sure that the bullet point and solution is together and at least paragraph or two long.