What Is the IRS Guideline for Determining Whether a Tax

question 23

Multiple Choice

What is the IRS guideline for determining whether a tax return position has substantial authority?

• A)A person knowledgeable in the tax law concludes that the position has a something less than 50% likelihood of being supported.
• B)A person knowledgeable in the tax law concludes that the position has at least a 50% likelihood of being supported.
• C)A person knowledgeable in the tax law concludes that the position has at least a two-thirds likelihood of being supported.
• D)A person knowledgeable in the tax law concludes that the position has at least a 75% likelihood of being supported.

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Definitions:

Red Chips

In finance, companies based in Mainland China that are incorporated internationally and listed on the Hong Kong Stock Exchange. In gaming, chips colored red typically represent a specific value.

Chosen Field

Chosen field refers to a specific area or discipline that an individual has selected to pursue professionally or academically.

Probability

A scoring system that rates the probability of an event from 0 (not occurring) to 1 (certainly occurring).

Graduates

Individuals who have completed the requirements of their course of study at an educational institution.