A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 16

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 these.

---

Definitions:

Common Ancestor

An ancestor that two or more descendants have in common, from which they have diverged through the process of evolution.

Synapsids

A lineage of tetrapods that emerged 300 million years ago and gave rise to mammals. Synapsids can be distinguished from other tetrapods by the presence of a pair of openings in the skull behind the eyes, known as the temporal fenestrae.

Million Years Ago

A term used in geology and anthropology to denote a period of time in the distant past, often in reference to the age of fossils or earth formations.

Tetrodotoxin (TTX)

A potent neurotoxin found in certain species of pufferfish as well as some other marine and terrestrial animals, known for blocking sodium channels on nerve cells.