Final answer:
In a closed transaction, the scope of tax planning is limited to presenting the taxpayer's facts to the government in the most favorable, legal manner. (Option d. Only a and c)
Step-by-step explanation:
In a closed transaction, tax planning is more limited compared to an open transaction. Closed transactions typically involve situations where the relevant facts and events have already occurred, leaving little room for proactive tax planning strategies. Tax professionals must work within the established framework of these completed transactions and facts.
However, even within these constraints, tax planning is essential. It involves presenting the taxpayer's financial and factual information to the government in the most favorable, legal manner possible, aiming to minimize tax liability while ensuring compliance with tax laws and regulations. This approach requires careful analysis and interpretation of existing tax laws and regulations to identify opportunities for optimization within the confines of the closed transaction. It underscores the importance of accurate reporting and ethical tax practices in navigating closed transactions.
Therefore, the correct answer is option d. Only a and c.