A Substantial Understatement of Tax Liability Involves Which of the Following

question 82

Multiple Choice

A substantial understatement of tax liability involves which of the following?

• A)understatement of tax exceeding the greater of 10% of tax required to be shown on the return or $5,000 for individuals
• B)underpayment of tax exceeding the greater of 15% of the tax required to be shown on the return or $5,000 for individuals
• C)underpayment of tax exceeding the lesser of 25% of the tax required to be shown on the return or $5,000 for individuals
• D)$10,000 or more difference between the amount shown on the return and the correct amount due

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Definitions:

Implied Warranty

A legal doctrine that automatically provides certain guarantees from the seller to the buyer, suggesting that the product or service is fit for its intended purpose.

UCC Section

a specific provision or part of the Uniform Commercial Code, which is a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Express Warranty

A seller's promise or guarantee that a product will meet a certain level of quality and reliability, explicitly stated in a contract or by implication through advertising.

Res Ipsa Loquitur

A legal doctrine that allows for the presumption of negligence in a case where the accident occurring is the type which normally does not happen in the absence of negligence.