A Taxpayer Ordinarily Should Not Assert a Tax Position Unless

question 9

Multiple Choice

A taxpayer ordinarily should not assert a tax position unless it is supported by a "reasonable basis." 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:

Economic Incentives

Financial motivators used to influence the behavior of individuals or organizations, often utilized to achieve desired policy outcomes.

Structures and Systems

The organized frameworks and processes within which activities are carried out in an organization to effectively achieve its goals.

Planned Change

Intentional and systematic efforts to transform an organization or specific aspects of it, typically involving structured processes and strategies.

Change Agent

Tries to change the behaviour of another person or social system.