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:

Government Programs

Initiatives and services provided by the governmental bodies designed to meet public needs, including welfare, healthcare, and infrastructure projects.

Regulations

Rules or directives made and maintained by an authority, designed to control or govern conduct within specific areas of activity.

Mandates

Instructions or directives given by the electorate to elected officials, or the authority granted to a government or its representatives to govern after an electoral victory.

Federal Agency

Units of the government responsible for the oversight and administration of specific functions, such as the Environmental Protection Agency or the Federal Bureau of Investigation.