Which of the Following Statements About Hiring Accounting or Fraud

question 49

Multiple Choice

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is NOT correct?

• A)If the trustee wants to employ attorneys, accountants, or other professionals to represent or assist the trustee, the trustee has to get the court's approval.
• B)All the professionals must be employed under Code section 327.
• C)The retention of a fraud examiner or investigator in a bankruptcy proceeding is up to the discretion of the trustee.
• D)A creditor may engage the services of a professional to investigate allegations of bankruptcy fraud independently from the court.In this case, the creditor usually compensates the professional directly.

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Definitions:

Medical Expense Deduction

A tax deduction that allows taxpayers to deduct unreimbursed medical and dental expenses that exceed a certain percentage of their adjusted gross income.

Deduction Limitation

Restrictions or caps placed on the amount that can be deducted from taxable income for various expenses.

AGI Threshold

The point at which certain tax benefits begin to be phased out or limited based on the taxpayer's adjusted gross income.

Personal Casualty Losses

Financial losses suffered from the sudden, unexpected, or unusual damage or loss of property due to events like natural disasters, that may be deductible under certain conditions.