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:

Big-Game Hunting

Big-game hunting involves the tracking and hunting of large animals, often for food, sport, or traditional cultural practices.

Microlith

Small, often pointed stone tools that were part of the toolkit in prehistoric times, used as spear points or arrowheads.

Blade

A thin, flat edge or surface used for cutting or shaping materials, found in tools such as knives, swords, and blades of grass.

Neolithic Transition

The period marking the shift from hunting and gathering communities to agricultural and settlement societies, bringing about significant changes in human lifestyle and culture.