Q: 16
Alicia has been charged with tax evasion. As a defense, Alicia claims that she made an honest
mistake due to the complexity of the tax law and did not intentionally violate the jurisdiction's tax
laws. If the court finds that her mistake was made in good faith, then she will most likely NOT be
found to have willfully engaged in fraudulent actions to avoid reporting or paying her taxes.
Options
Discussion
Nice and clear scenario here. True (A) is correct because a good faith mistake usually defeats the "willfulness" element required for tax fraud. That's generally backed by real-world cases, too.
A , most practice tests and official CFE manuals always highlight good faith as a valid defense to willfulness in tax cases.
Its A. Willfulness is the key element here, and a genuine good faith mistake means she didn’t act with fraudulent intent. If there's honest confusion because of complicated tax law, that typically flips liability. Anyone disagree?
Pretty straightforward, it's A here.
I don’t think B is right here. A. Good faith mistakes mean no willful intent, pretty sure.
B for me
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