Question

In refererpe to tax research, what is meant by the best possible defensibly correct solution? O A. The best solution for structuring one's affairs so as to minimize the amount of taxes and maximize the after-tax return, knowing that the position will not be challenged upon audit by the IRS O B. The best solution that is advantageous to the client but is based upon substantial authoritative support knowing that the position will not be challenged upon audit by the IRS O c. The best solution for evaluting only nontax implications for completed transaction (e.g., a sale of property), knowing that the position will be challenged upon audit by the IRS D. The best solution that is advantageous to the client but is based upon substantial authoritative support even though the position may be challenged upon audit by the IRS. O

Answer 1

The correct answer to this is

Option D

The best solution that is advantageous to the client but is based on substantial authoritative support even though the position may be challenged upon audit by the IRS

Solution must be DEFENSIBLY correct. Defense is used when there is an attack. In this case it means an AUDIT by the IRS. Option A and Option B are incorrect since NO AUDIT is involved in these two options.
If we talk about Option C it only mentions transactions with NON TAX implications whereas in case of tax research it could be a transaction with tax implication as well. In majority of the transactions there would be tax implications.