A CPA Can Take a Tax Return Position for a Client

question 4

True/False

A CPA can take a tax return position for a client that is contrary to current IRS interpretations of the law.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value. For bonds, it's the amount to be repaid at maturity; for stocks, it's the nominal value assigned upon issuance.

Callable Bond

A type of bond that gives the issuer the right to redeem the bond at a predetermined price before its maturity date.

Yield To Call

The rate of return anticipated on a bond if it is held until the call date, before the bond's maturity date.

Par Value

The face value of a bond or stock, representing the amount the issuer will return to the holder at maturity.