Identify Which of the Following Statements Is True

question 63

Multiple Choice

Identify which of the following statements is true.

• A) The first step in conducting tax research is to clearly understand the issues involved.
• B) Tax planning is an integral part of both closed- fact situations and open- fact situations.
• C) The Statements on Standards for Tax Services recommend that only written tax advice be provided to the client in all situations.
• D) All of the above are false.

---

Definitions:

Casualty

A sudden, unexpected, or unusual event that causes damage or loss, often used in reference to natural disasters for tax deduction purposes.

Self-Employment Tax

This is a charge including Social Security and Medicare dues, principally aimed at those working independently.

Form 1040

Form 1040 is the U.S. federal income tax form used by individuals to file their annual income tax returns with the Internal Revenue Service (IRS).

Schedule SE

The tax form used by self-employed individuals to calculate the taxes owed on net earnings from self-employment.