The "Cohan Rule" States That

question 33

Multiple Choice

The "Cohan Rule" states that:

• A) A taxpayer is not liable for tax liability that arose due to a tax return preparer's negligence
• B) A taxpayer who incurred legitimate tax deductions may claim reasonable estimates of these deductions on her tax return
• C) A taxpayer who furnishes incomplete information to a tax return preparer may claim estimated deductions only if the tax return preparer independently determines the amounts of these estimates in good faith
• D) A tax return preparer who claims estimated deductions on a client's tax return is legally liable to the government for any tax liability that arises if the deductions are illegitimate and the taxpayer is unable or unwilling to pay the resulting increase in tax liability

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Definitions:

New Dealers

Proponents and implementers of the New Deal, a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.

European Universities

Institutions of higher education and research in Europe, known for their long histories, contributions to learning, and influence on global academic standards.

Policy Disagreement

Conflicts or differences in opinions regarding specific strategies or plans of action proposed or implemented by governments or organizations.