If Congress Enacts Legislation Late in the Year That Is

question 60

Multiple Choice

If Congress enacts legislation late in the year that is retroactive to the beginning of the year, the legislation increases:

• A) Audit risk
• B) Tax law uncertainty
• C) Financial risk
• D) Marginal tax rate uncertainty

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, owning assets, and being liable for debts.

Paralegals

Individuals trained in subsidiary legal matters but not fully qualified as lawyers, who perform tasks requiring knowledge of the law and legal procedures under the supervision of a lawyer.

Banned

Prohibited by law or regulation from use, distribution, or production.

Business Entities

Structures established by one or more individuals to conduct business or engage in activities for profit, including corporations, partnerships, and sole proprietorships.