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.