If a Taxpayer Decides to Take Advantage of an Ambiguous

question 79

Multiple Choice

If a taxpayer decides to take advantage of an ambiguous tax issue to reduce future tax costs, the decision increases:

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

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Definitions:

Wish Fulfillment

A psychoanalytic concept suggesting that dreams represent the unconscious fulfillment of repressed desires.

Role-Playing Theory

The concept that people learn and adapt behaviors based on the roles they are expected to play in society, which can influence their identity and social interactions.

Divided-Consciousness Theory

A hypothesis in psychology that suggests the mind can operate on more than one level of awareness simultaneously.

Dissociative Theory

Explains certain behaviors and experiences, such as amnesia or identity fragmentation, as a result from a disconnection between thoughts, identity, consciousness, and memory.