A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 50

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 reasonable basis and is disclosed on the tax return.
• C) if the position has a realistic possibility of being sustained by the IRS or courts.
• D) if there is not substantial authority to support the position.
• E) None of the choices are correct.

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Definitions:

Quadratic Functions

Mathematical functions of the form f(x)=ax^2+bx+c, where a, b, and c are constants and a ≠ 0.

Parabolic Graphs

Graphical representations of quadratic functions that display a symmetrical, curved shape similar to an arch.

Sporting Events

Scheduled competitions in various sports where athletes participate to determine a winner.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.