A Taxpayer Can Avoid a Substantial Understatement of Tax Penalty

question 59

Multiple Choice

A taxpayer can avoid a substantial understatement of tax penalty:

• A)if the position is frivolous and disclosed on the tax return.
• B)if the position has a realistic possibility of being sustained by the IRS or courts.
• C)if the position is not frivolous and disclosed on the tax return.
• 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:

Marasmus

A wasting disease in which the body’s fat and muscle are depleted; growth stops and the body wastes away, taking on a hollow appearance.

Kwashiorkor

A malnutrition disease in children caused by deprivation of protein and calories and characterized by lethargy, bloating, and swelling of the stomach.

Muscular Dystrophy

A group of genetic disorders characterized by progressive weakness and degeneration of skeletal muscles over time.

Adult Weight

The body weight of an individual after fully completing physical growth, typically measured during adulthood.