A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 95

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 these.

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Definitions:

Psychological Variable

An element, feature, or factor that can be changed and can affect the outcome of psychological research or behavior.

Correlation Coefficients

Statistical measures that determine the degree to which two variables vary together or the strength of their relationship.

Predictions

Statements or claims made about future events, often based on patterns observed in past data or understanding of processes.

Correlation Coefficients

Statistical measures that indicate the extent to which two or more variables fluctuate together.