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:

Initial States

The starting conditions or positions of a system or process from which changes or developments occur.

End States

The final condition or position of a process, project, or situation after all changes or developments have occurred.

Flashes of Insight

Flashes of insight refer to sudden realizations or moments of clarity that solve a problem or provide understanding, often occurring unexpectedly after periods of contemplation.

Generating Knowledge

The process of creating new understandings, insights, or information through observation, experimentation, reflection, and analysis.