In a closed transaction, the scope of tax planning is:
A) more limited as compared to an open transaction
B) limited by the IRS rules of practice
C) limited to presenting the taxpayer's facts to the government in the most favorable, legal manner
D) Only a and c

Question

Quizplus · Accepted Answer

In a closed transaction, the facts and circumstances are already established and the tax planning opportunities are limited. The tax planning strategies in a closed transaction are limited to presenting the facts in the most favorable and legal manner, which helps the taxpayer to manage the tax liabilities. Therefore, options A and C are correct, and option B is not relevant in this context. Hence, the best answer is D.

In a Closed Transaction, the Scope of Tax Planning Is