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.

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Definitions:

Health Promoting

Activities or policies aimed at enhancing individual or public health and well-being.

Hereditary

A genetic term describing traits or conditions passed from parents to their offspring through genes.

Coping Mechanisms

Strategies or behaviors that individuals use to manage stress, emotional pain, or difficult situations.

Abusive Relationship

A relationship dynamic where one party systematically controls, dominates, or harms the other.