A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 108

Multiple Choice

A tax practitioner can avoid IRS penalty relating to a tax return position:

• A) only if the position has a more likely than not chance of being sustained by the IRS or courts.
• B) if the position has a realistic possibility of being sustained by the IRS or courts.
• C) if there is not substantial authority to support the position.
• D) if the position has a reasonable basis and is disclosed on the tax return.
• E) None of the above.

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Definitions:

Meat Powder

Often referenced in classical conditioning experiments, particularly those conducted by Ivan Pavlov, as a stimulus for eliciting salivation in dogs.

Salivation

The secretion of saliva, which can be stimulated by the sight, smell, or thought of food, aiding in digestion and oral hygiene.

UCS

Unconditioned Stimulus; in classical conditioning, it is a stimulus that naturally and automatically triggers a response without prior learning.

Classical Conditioning

A process of learning where two stimuli are continually paired together; the response, initially caused by the second stimulus, is finally caused by the first stimulus alone.