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:

Taft-Hartley Act

A federal legislation passed in 1947 that limits the actions and authority of labor unions within the United States.

Cooling-off Period

A legally mandated period of time allowing for the cancellation of a contract without penalty or for parties involved in a dispute to negotiate a resolution before taking further legal action.

Exclusion

The act of preventing certain groups or individuals from participating or being included within an activity, process, or benefit.

Inclusion

The practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized.