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:

Social Norms

Rules and standards that are understood by members of a group and that guide and constrain social behavior without the force of laws.

Bearers of Culture

Individuals or groups that carry, transmit, and preserve cultural traditions and values.

Socialization

The lifelong process through which individuals acquire the norms, values, and behaviors appropriate for participating in their society.

Societal Expectations

Norms and standards that society imposes on its members regarding how they should behave.