Which of the following is NOT something the CPA should do in tax planning?
A) Uncritically accept the client's explanations for assumptions and representations
B) Establish the relevant background facts
C) Consider the reasonableness of the assumptions and representations
D) Consider the business purpose and economic substance of the transaction, if relevant to the tax consequences of the transaction

Question

Quizplus · Accepted Answer

The CPA should not uncritically accept the client's explanations for assumptions and representations. Instead, they should establish the relevant background facts, consider the reasonableness of the assumptions and representations, and consider the business purpose and economic substance of the transaction, if relevant to the tax consequences of the transaction. It is important for the CPA to use professional judgement and evaluate the information provided by the client to ensure that the tax planning is appropriate and ethical.

Which of the Following Is NOT Something the CPA Should