Virtually every transaction involves the taxpayer and two other parties that have an interest in the tax ramifications of the transaction.

Question

Quizplus · Accepted Answer

Taxpayers are directly impacted by their own tax transactions, and typically another party, such as a business, individual, or government entity, is also affected by the tax implications. Therefore, most transactions involve at least three parties with an interest in the tax consequences.

Virtually Every Transaction Involves the Taxpayer and Two Other Parties