Investigation of a tax problem that involves a closed-fact situation means that
A)the client's transactions have already occurred and the tax questions must now be resolved.
B)the client's tax return has yet to be filed.
C)future events may be planned and controlled.
D)research is primarily concerned with applying the law to the facts as they exist.

Question

Quizplus · Accepted Answer

A closed-fact situation means that the client's transactions have already occurred and the facts cannot be altered. Therefore, the investigation must focus on resolving the tax questions based on the existing facts. The research is primarily focused on applying the law to the existing facts. The client's tax return may have already been filed or may still need to be filed, but this is not the primary consideration in a closed-fact situation. Future events may not be relevant as the situation has already occurred.

Investigation of a Tax Problem That Involves a Closed-Fact Situation