A Taxpayer Can Avoid a Substantial Understatement of Tax Penalty

A taxpayer can avoid a substantial understatement of tax penalty:

A) if the position has a reasonable basis and is not disclosed on the tax return.
B) if the position has a realistic possibility of being sustained by the IRS or courts.
C) if the position is frivolous and disclosed on the tax return.
D) if there is substantial authority to support the position.
E) None of the choices are correct.