CTC Client Communication & Advisory Skills 2

Question 1

During a discovery meeting, which type of question best uncovers a business owner's long-term goals for tax planning?

Accepted Answer

"Where do you want your business and family to be financially in five years?"

Answer

Open-ended, goal-focused questions reveal the priorities a proactive tax plan must serve.

Question 2

A tax coach wants to show a prospect the value of a proposed planning engagement. Which framing is most persuasive?

Accepted Answer

Projected tax savings compared with the planning fee (return on investment)

Answer

Showing savings as a multiple of the fee makes the value concrete and supports value-based pricing.

Question 3

Which document should define the scope, fees, responsibilities, and exclusions of a tax planning engagement before work begins?

Accepted Answer

An engagement letter

Answer

An engagement letter sets expectations and limits liability by documenting scope and responsibilities in writing.

Question 4

A client discloses that a prior-year return omitted significant income. Under Circular 230 §10.21, what must the practitioner do?

Accepted Answer

Promptly advise the client of the noncompliance and its consequences

Answer

Section 10.21 requires advising the client of the error or omission and its consequences, not filing or reporting on the client's behalf.

Question 5

When presenting a tax plan to a client with little financial background, the most effective communication approach is to:

Accepted Answer

Use plain language, visual summaries, and focus on dollars saved and next steps

Answer

Explaining things plainly, with visuals and clear action items, improves understanding and implementation.

CTC - Certified Tax Coach Practice Test