Initial Determinations of the Facts of a Tax Issue Are

question 7

Multiple Choice

Initial determinations of the facts of a tax issue are likely tobe incomplete because:

• A)taxpayers tend tosee the dispute only from their side
• B)taxpayers not being trained in the tax law may be unable todetermine which facts are important toconvey
• C)fact-gathering often depends on the reliability of the memory of taxpayers
• D)all of these are correct

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Definitions:

Racketeer Influenced and Corrupt Organizations Act

A federal law aimed at combating organized crime in the United States by facilitating extended penalties for acts performed as part of a criminal organization.

Violation

The act of disobeying or acting against a law, rule, agreement, or code of conduct.

Imprisonment

The act of confining someone in a prison or other facility as a form of punishment following conviction for a crime.

Section 11

A provision of the Securities Act of 1933 that holds issuers liable for providing false statements in their registration statements, designed to protect investors.