Hower Inc.'s tax advisor recommends that the corporation take a deduction that the IRS has disallowed for other corporations in similar circumstances. If Hower decides not to take the deduction, it is reducing:

Question

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By not taking the deduction that the IRS has previously disallowed for other corporations, Hower Inc. is reducing its audit risk. This is because taking a position that is known to be contentious or has been disallowed could increase the likelihood of an audit by the IRS.

Hower Inc'S Tax Advisor Recommends That the Corporation Take a Deduction