Yes, that's right. It's a Bayesian Game and you are attempting to reduce risk to an acceptable level (not under paying) while minimizing loss (not over paying tax) with only partial information (what the results of a lawsuit would determine).
Chances are your CPA was not correct. CPAs routinely violate the law as a regular course of duty and the IRS is fine with it, even encourages it, because it gives them more revenue. If you are looking to go down a multi-year rabbit hole on this, then try to find the law that imposes any tax on __your__ domestic income.
