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Please do not use the textbook solution for this question, use your own words!!! TAX STRATEGY AND CRITICAL THINKING PROBLEM The IRS is disputing a

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Please do not use the textbook solution for this question, use your own words!!!

TAX STRATEGY AND CRITICAL THINKING PROBLEM The IRS is disputing a deduction reported on your Year 1 tax return, which you filed on April 12 of Year 2. On April 4 of Year 5, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a "car- rot"the prospect of an offer in compromiseand a "stickthe possibility of a higher penalty. Although you have substantial authority for the deduction, you consider the fol- lowing alternatives: (1) waive the statute of limitations for the entire return, (2) waive the statute of limitations for the deduction only, or (3) do not waive the statute of limitations in any way, shape, or form. Which alternative should you choose, and why

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