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:

Mistakes

Actions or decisions that are wrong or inaccurate, often resulting from bad judgment or a lack of information.

External Locus of Control

A psychological concept where individuals believe that their successes or failures result from external factors beyond their control, rather than their own efforts.

Destinies

The predetermined or inevitable courses of events in individuals' lives or the history of entities, often viewed as beyond human control.

Internal Locus of Control

A psychological concept where individuals believe they have control over the outcomes of their actions and the events in their life.