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:

Brainstorming

A technique in which children are encouraged to come up with creative ideas in a group, play off one another’s ideas, and say practically whatever comes to mind.

Creative Ideas

Innovative or original thoughts and concepts that are often seen as the foundation for problem-solving and artistic creation.

Fagan Test

A psychological test assessing the ability of infants to process information, including recognizing novel stimuli, indicating early cognitive abilities.

Bayley Scales

A comprehensive developmental assessment tool for infants and young children, measuring areas such as cognitive, motor, and language development.