Regarding open transactions, which of the following statements is INCORRECT?
A) the transaction is not yet completed
B) the practitioner can suggest changes to achieve a better tax result
C) a tax practitioner has some degree of control over the client's tax liability
D) the practitioner can fix the problem by amending the client's tax return

Question

Quizplus · Accepted Answer

The practitioner cannot fix the problem by simply amending the client's tax return in an open transaction because the transaction is not yet completed. The outcome of the transaction is uncertain, and any changes made to the client's tax return may be premature and subject to adjustment by the tax authorities.

Regarding Open Transactions, Which of the Following Statements Is INCORRECT