If a company is engaged in transfer pricing,it can avoid penalties imposed by the IRS if it will enter into an agreement with the IRS called a(n):

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The correct option is an advanced pricing agreement (APA), which is a pre-filing agreement between a taxpayer and the IRS, outlining transfer pricing methods and establishing an acceptable range of arm's length results. This agreement can help companies avoid penalties and reduce the chances of audits or disputes with the IRS. The other options listed are not relevant to transfer pricing agreements with the IRS.

If a Company Is Engaged in Transfer Pricing,it Can Avoid