Your Client Has Just Received an IRS Summons Toappear for an Interview. the

question 47

Multiple Choice

Your client has just received an IRS summons toappear for an interview. The following statements are CORRECT concerning this interview EXCEPT:

• A)Provided your client gives prior notice tothe IRS, the taxpayer may record the interview.
• B)The IRS may record the interview but must provide a transcript of the recording tothe taxpayer if he requests a copy and pays for the duplication charges.
• C)Notes may not be taken by either the IRS agent or the taxpayer during the interview.
• D)The IRS investigator must explain various taxpayer rights toyour client before commencing the interview.

---

Definitions:

Pure Expectations Hypothesis

A theory that suggests that the interest rates on long-term bonds will equal an average of current and future short-term interest rates.

Yield Curve

A graphical representation showing the relationship between the interest rates on debts of different maturities, typically of government bonds, highlighting investors' expectations for future interest rates and economic conditions.

Liquidity Premium

An additional return that investors demand for holding securities that are not easily convertible into cash without a significant loss in value.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified time period, often measured as a percentage.