A Taxpayer Ordinarily Should Not Assert a Tax Position Unless

question 7

Multiple Choice

A taxpayer ordinarily should not assert a tax position unless it is supported by "substantial authority." This standard commonly is referred to as requiring a certain probability of acceptance or approval if the position is detected and challenged by the taxing authority.What is the associated probability of success?

• A) 20%
• B) 33.3%
• C) 40%
• D) Over 50%

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Definitions:

Social Desirability Bias

The tendency of respondents to answer questions in a manner that they believe will be viewed favorably by others.

Self-reports

Methods in research and psychology where individuals provide data about themselves, often referring to their feelings, attitudes, or behaviors.

Less Prejudiced

Refers to demonstrating or holding fewer prejudiced attitudes, beliefs, or actions against individuals or groups based on preconceived notions.

Healthier

Possessing or exhibiting better physical or mental health compared to a previous state or to others.