Which of the Following Statements Does Not Reflect the Rules

question 42

Multiple Choice

Which of the following statements does not reflect the rules governing the accuracy-related penalty for negligence?

• A) The penalty rate is 20%.
• B) The penalty applies whenever the taxpayer takes a return position that is contrary to a court decision.
• C) The penalty applies when the taxpayer does not keep records adequate to compute the tax correctly.
• D) The penalty is waived if the taxpayer uses Form 8275 to disclose a return position that is reasonable but contrary to the IRS position.

---

Definitions:

Educational Qualifications

Certifications or degrees earned through formal schooling and training, signifying levels of education or specialization.

Delegation of Duties

The act of transferring responsibility for specific tasks or functions from one person to another within an organization or group.

Restatement (Second) of Torts

A legal document summarizing the general principles of American tort law, serving as a guide for judges and lawyers.

Common Law Negligence

A legal concept that holds individuals liable for harm caused by their failure to act as a reasonably prudent person would under similar circumstances.