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:

RDS

Respiratory distress syndrome, a condition often seen in premature infants causing them difficulty in breathing due to undeveloped lungs.

COPD

Chronic Obstructive Pulmonary Disease, a progressive lung disease characterized by increasing breathlessness.

Pleurisy

Also known as pleuritis; this is an inflammation of the parietal pleura of the lungs.