A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 62

Multiple Choice

A tax practitioner can avoid IRS penalty relating to a tax return position:

• A)only if the position has a more likely than not chance of being sustained by the IRS or courts.
• B)if the position has a realistic possibility of being sustained by the IRS or courts.
• C)if there is not substantial authority to support the position.
• D)if the position has a reasonable basis and is disclosed on the tax return.
• E)None of the choices are correct.

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Definitions:

Ethnic Minorities

Groups within a larger community that differ from the majority in terms of racial, national, cultural, linguistic, or religious characteristics.

Financial Backing

The act of providing financial support, typically to a project or business, to help it succeed or grow.

German States

The German States refer to the independent political entities that existed in the territory of modern-day Germany before its unification in 1871.

Revolutionary Governments

Governments established during or after revolutionary movements which aim to fundamentally change political, economic, or societal structures.