Which of the Following Statements Is CORRECT Regarding Unauthorized Practice

question 40

Multiple Choice

Which of the following statements is CORRECT regarding unauthorized practice of law?

• A)Taxpayers may not draft their own contracts.
• B)Taxpayers may not represent themselves in Tax Court.
• C)A CPA cannot express a legal opinion on a non-tax matter.
• D)A CPA cannot express a legal opinion on a tax matter.

---

Definitions:

Security Interest

A legal claim or lien on collateral that secures the performance of an obligation, usually repayment of a debt.

Collateral

An asset offered to secure a loan or other credit and subject to seizure upon default.

Security Interests

A lawful demand or security interest on assets that have been offered as a guarantee, typically to ensure the repayment of a borrowed sum.

Time of Perfection

The point at which a security interest is legally established against third parties, typically by filing or possession.