For Each of the Indicated Tax Penalties, Indicate the Appropriate

question 63

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 taking an unreasonable tax return position.

• 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:

Underreported

Refers to instances or events that are not fully reported or disclosed, often resulting in a lack of awareness or understanding of their true frequency or severity.

Less Power

A situation or condition of having reduced influence, strength, or authority compared to others or compared to a previous state.

Relationship

A connection, association, or involvement between individuals or entities.

Waller's Principle

A theory that in relationships, the partner with the least interest in continuing the relationship possesses more power.