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:

Commercial Interests

Commercial interests refer to the concerns, priorities, or objectives of businesses and entrepreneurs, particularly those related to making a profit and expanding market share.

Speaker of the House

The presiding officer of the United States House of Representatives, responsible for leading the House's legislative business and representing the body.

Congressional Enactments

Laws and regulations that have been formally approved and passed by both houses of Congress.

Federalists

Members of a political party or movement in the late 18th and early 19th centuries in the United States that supported a strong central government, the ratification of the U.S. Constitution, and an expansive interpretation of federal government powers.