A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax

question 95

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 these.

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Definitions:

Objective Tests

These are assessments designed to measure individuals' knowledge or abilities in a specific area, providing quantifiable and concrete results.

Self-Report Tests

Psychological assessments where individuals provide data about themselves, often used to gather information on personality, symptoms of mental disorders, and more.

Confound

In an experiment, what occurs when two or more variables exert their influence at the same time, making it impossible to accurately establish the causal role of either variable.

Independent Variables

Factors in an experiment that are manipulated or changed by the researcher to observe their effects on dependent variables.