A Client Wants to Take a Tax Return Position with Less

question 73

Multiple Choice

A client wants to take a tax return position with less than a 10% probability of being upheld in court. The CPA should

• A)take the client's desired position, but not sign the tax return.
• B)inform the client that the position does not have a realistic possibility of success.
• C)ask the client to sign a waiver of his right to sue the CPA in the event the IRS disallows the position.
• D)take the client's desired position and sign the return as usual.

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Definitions:

Confidence Interval

An interval estimate of a population parameter used to indicate the reliability of an estimate.

Population Variance

A measure of the spread of a population’s attributes or numbers; it signifies how much the data differ from the mean of the population.

Monthly Returns

The profit or loss generated by an investment over the course of a month, typically expressed as a percentage.

Sample Size

The count of data points or observations gathered for a study or utilized in statistical evaluation.