When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to dispose of a stock, the tax advisor is faced with
A)a restricted-fact situation.
B)a closed-fact situation.
C)an open-fact situation.
D)a recognized-fact situation.

Question

Quizplus · Accepted Answer

The taxpayer is seeking advice on the most advantageous way to dispose of a stock, which does not provide a clear-cut answer. The tax advisor needs more information to provide advice and must analyze the situation to arrive at a solution. This is known as an open-fact situation where the relevant facts are not immediately apparent and require further investigation.

When a Taxpayer Contacts a Tax Advisor Requesting Advice as to the Most