A Taxpayer Can Avoid a Substantial Understatement of Tax Penalty

question 59

Multiple Choice

A taxpayer can avoid a substantial understatement of tax penalty:

• A)if the position is frivolous and disclosed on the tax return.
• B)if the position has a realistic possibility of being sustained by the IRS or courts.
• C)if the position is not frivolous and disclosed on the tax return.
• 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:

Incumbent

The current holder of a position or office, typically in a political or organizational context.

Job Descriptions

Detailed summaries of the duties, responsibilities, required qualifications, and reporting relationships of a specific job within an organization.

Competency Matrix

A framework used to define and assess the skills, knowledge, and behaviors required for specific roles or tasks within an organization.

Job Specification

A written statement that explains what a job demands of jobholders and the human skills and factors required.