Has anyone read this or familiar with this type of question?
Boniface's tax client has engaged in a transaction that is adversely affected by a new statute enacted by Congress. Prior law supported the transaction, but the new law does not. Both the client and Boniface believe that the new statute is unfair as it impacts the client. However, the new statute is clear and unambiguous. Committee reports do not specifically address the client's situation, although the wording of the statute apparently eliminates the tax benefits the client was seeking. Which of the following is true?
A. Boniface may recommend claiming the tax benefits because there is a “realistic possibility” the IRS will accept the claim in light of the inequitable nature of the law's impact.
B. Boniface may recommend claiming the tax benefits but should disclose the claim to the IRS, for the position has a reasonable basis, even though there is not a realistic likelihood that it will be sustained.
C. Boniface may not recommend the position, for it lacks a reasonable basis.
D. B and C.
the correct answer is C….
It begins with a 75
Been here too long as a cheerleader....ready to pass
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