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:

Thought Processes

The operations of the mind involved in reasoning, problem-solving, and the organization of information.

Neuroeconomics

An interdisciplinary field that studies the brain mechanisms at the intersection of economics, psychology, and neuroscience.

Decision Making

The cognitive process of choosing between different alternatives or actions to achieve a desired outcome.

Split-Brain Patient

An individual who has had the corpus callosum, the connective bridge between the two hemispheres of the brain, severed, often used to study the separate functions of the brain hemispheres.