Question

Which of the following is CORRECT with respect to a file memo?

a. It should include only the strengths of the client's position.
b. It should include a list of the tax issues that are in dispute and a matching conclusion for each identified issue.
c. It should be prepared only in closed-fact situations.
d. All of the above.

Answer 1

The correct option with respect to a file memo is b - it should include a list of tax issues in dispute and a matching conclusion for each one.

Step-by-step explanation:

In the context of a file memo, the correct option is b. It should include a list of the tax issues that are in dispute and a matching conclusion for each identified issue.

A file memo is a written document used by professionals to summarize the key points and findings of a particular case or situation. When it comes to tax issues, it is important to identify all the relevant issues and provide a conclusion for each one. This helps in organizing the information and making informed decisions.

Option a is incorrect because a file memo should not only include strengths but also weaknesses and other relevant information. Option c is incorrect because a file memo can be prepared in both closed-fact situations and open-fact situations, depending on the specific case.