What Is the Requirement for a Substantial Understatement of Tax

question 92

Multiple Choice

What is the requirement for a substantial understatement of tax for individuals?

• A)The understatement exceeds 10% of the tax required to be shown on the return.
• B)The understatement exceeds $5,000.
• C)The understatement exceeds the lesser of 10% of the tax required to be shown on the return or $5,000.
• D)The understatement exceeds the greater of 10% of the tax required to be shown on the return or $5,000.

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Definitions:

Continuously and Immediately

Refers to actions or processes that occur without interruption and begin without delay.

Positive Reinforcement

The application or addition of a stimulus that increases or maintains the probability of some behaviour.

Negative Reinforcement

A behavioral psychology concept where the removal of an unfavorable outcome or stimulus strengthens a desired behavior.

Punishment

A consequence given to reduce the occurrence of a particular behavior.