What Is the Advantage of an Advance Pricing Agreement

question 12

Multiple Choice

What is the advantage of an advance pricing agreement?

• A) IRS (Internal Revenue Service) will not challenge the transfer price after the tax return is filed if the agreement is followed.
• B) Worldwide taxes will be minimized.
• C) The brief form explaining the transfer price to be used can be completed with minimal effort by the taxpayer but will reduce a tremendous amount of work later.
• D) All of the above are advantages of APA.

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