A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 7

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 realistic possibility of being sustained by the IRS or courts.
• C) if there is not substantial authority to support the position.
• 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:

Scientific Management

A management theory that applies scientific methods and principles to optimize labor productivity.

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Platforms and technologies that enable users to create, share content, and participate in social networking.

Human Relations Techniques

Methods and strategies used to maintain and improve interpersonal relations, particularly in a workplace context.

Labor Union

An organization of workers formed to protect and advance their rights and interests, commonly through collective bargaining.