Identify Which of the Following Statements Is True

question 9

Multiple Choice

Identify which of the following statements is true.

• A)An individual taxpayer may be subject to a penalty for underpayment of estimated taxes if his balance of tax due when he files is $500.
• B)A penalty for substantial understatement will potentially be assessed on an individual if the underpayment of tax exceeds the greater of 15% of the tax shown on the return or $5,000.
• C)Substantial authority exists for a position that is supported by a decision rendered by the Court of Appeals for the taxpayer's own circuit.
• D)All of the above are true.

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Definitions:

Rural Electrification Administration

A U.S. government agency created in 1935 to bring electricity to rural areas that were not served by private utility companies.

Impact

The effect or influence of one object or event on another, often measured to assess outcomes or effectiveness.

Max Schmeling

A German professional boxer who became the heavyweight champion of the world in the early 20th century.

Joe Louis

An American professional boxer and heavyweight champion from 1937 to 1949, known for his significant impact on the sport and cultural barriers he broke through his achievements.