For Each of the Indicated Tax Penalties, Indicate the Appropriate

question 86

Multiple Choice

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Preparer penalty for reckless conduct.

• A)Ignorance of the tax law
• B)Reasonable basis
• C)Reasonable cause
• D)Complexity of the tax law
• E)Substantial authority
• F)Disclosure on return

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Definitions:

Structured Activities

Tasks or engagements that are organized in a systematic way, often with clear objectives, procedures, and expected outcomes, to guide participants' actions.

Mechanistic Structure

An organizational design that is highly structured and formalized, characterized by clear hierarchies, rigid divisions of labor, and centralized decision making.

Specialized Tasks

Specific, narrowly defined job tasks assigned to individuals or groups, designed to increase efficiency and proficiency by focusing on a particular aspect of work.

Hierarchy Authority

A system of organization where power and decision-making responsibilities are clearly outlined and ranked.