A Taxpayer Wishes to Take a Deduction for a Worthless

question 91

Multiple Choice

A taxpayer wishes to take a deduction for a worthless debt.Without proper documentation,the taxpayer faces the risk that the IRS will assert that

• A)the debt is not yet worthless,disallowing the deduction.
• B)the debt became worthless in an earlier period,and the statute of limitations prevents the taxpayer from amending that earlier return.
• C)both of the above.
• D)none of the above.

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Definitions:

Primed In Memory

Refers to the process of activating particular representations or associations in memory just before carrying out an action or task.

Meta-Cognition

Reflecting on one’s own thought processes.

Contamination

Contamination refers to the presence of undesired substances in or on a material, surface, or environment that can cause harm or damage.

Conjunction

A word used to connect clauses or sentences or to coordinate words in the same clause.