A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 87

Multiple Choice

A tax practitioner can avoid IRS penalty relating to a tax return position:

• 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 there is substantial authority to support the position.
• D)if the position has a reasonable basis and is not disclosed on the tax return.
• E)None of the choices are correct.

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Definitions:

Quantitative

Pertaining to the measurement and quantification of variables to analyze statistical, mathematical, or computational techniques.

Systematic

Systematic refers to a methodical approach to procedures or processes that follow a fixed plan or system, ensuring consistency and efficiency.

Data Reduction

The process of transforming and simplifying large sets of raw data into a more manageable form, enabling easier analysis and interpretation without losing significant information.

Content Analysis

A research method used to systematically analyze text or media to identify patterns, themes, or biases.