What Is the IRS Guideline for Determining Whether a Tax

question 55

Multiple Choice

What is the IRS guideline for determining whether a tax return position has substantial authority?

• A) A person knowledgeable in the tax law concludes that the position has a something less than 50% likelihood of being supported.
• B) A person knowledgeable in the tax law concludes that the position has at least a 75% likelihood of being supported.
• C) A person knowledgeable in the tax law concludes that the position has at least a 50% likelihood of being supported.
• D) A person knowledgeable in the tax law concludes that the position has at least a two- thirds likelihood of being supported.

---

Definitions:

Corporate Bylaws

Formal rules and regulations adopted by a corporation to govern its operations and management.

Indenture Contract

A formal agreement between a bond issuer and the bondholders, specifying the terms of the bond such as the interest rate, maturity date, and other obligations.

Articles of Incorporation

A document filed with a state or governmental body to legally document the creation of a corporation.

Provincial Tax Agreement

An accord between provinces or between the federal and provincial governments regarding the collection and distribution of taxes.