Which of the following is not a reason for relief from the substantial understatement penalty?
A)disclosure of the relevant facts pertaining to the questionable tax return position
B)substantial authority for the tax return position
C)reliance on a tax return preparer
D)reasonable cause and a good faith effort to comply with the tax law

Question

Quizplus · Accepted Answer

Reliance on a tax return preparer alone is not sufficient to avoid the substantial understatement penalty. Taxpayers must also show reasonable cause and good faith, among other possible defenses.

Which of the Following Is Not a Reason for Relief