Vera Is Audited by the IRS for Three Tax Years

question 22

Multiple Choice

Vera is audited by the IRS for three tax years.Her returns were prepared by the following parties,to each of whom Vera paid a professional fee. Vera wants help in appearing before the IRS Revenue Agent for the audit.Which of the following statements is correct?

• A)Sally may represent Vera for all tax years involved.
• B)Wesley may represent Vera,but only for tax year 2.
• C)Alex can represent Vera,but only for tax year 3.
• D)Vera may represent herself for all tax years involved.

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Definitions:

Credit Purchase

The acquisition of goods or services with an agreement to pay later, usually within an agreed period.

Recorded

The act of entering financial transactions into the accounting records of a business.

Bill Paid

An event where an obligation, often recorded as an accounts payable, is settled by paying the outstanding amount.

Accounts Receivable

Customer indebtedness to a company for the provision of goods or services that remain unpaid.