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:

Redistribution of Income

Economic policies or practices designed to adjust the distribution of wealth by transferring income from certain groups to others, often to reduce inequality.

National Government

Refers to the political authority that governs an entire nation, as opposed to state or local governments.

Traditional Values

Fundamental beliefs and moral principles that are passed down through generations, often associated with cultural, religious, or community norms.

Redistribution of Income

Refers to the government policy aimed at adjusting the distribution of wealth by transferring income through taxation, welfare programs, or other public spending.