A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 62

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:

Ecological Theory

A framework suggesting that individual development is influenced by different types of environmental systems, from immediate surroundings to broader societal contexts.

Genetic Determinants

Factors encoded in an individual's DNA that influence their traits and the likelihood of developing certain conditions or diseases.

Reinforcement

In behavioral psychology, a consequence applied to an organism's environment that increases the likelihood of a behavior being repeated.

Exosystem

A term from ecological systems theory referring to external social settings that indirectly influence an individual’s development, such as parents' workplaces.