A taxpayer wishes to assert a tax position concerning the deductibility of data communication service on a mobile wireless device that is partially used for business and partially used for personal activities.This tax position satisfies the "substantial authority" standard.Two federal district courts issued decisions that denied taxpayers a deduction for these costs,but the U.S.Supreme Court issued a later decision that allowed a taxpayer a deduction for these costs.The taxpayer may:

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The taxpayer may assert this tax position because it satisfies the "substantial authority" standard, despite the fact that two federal district courts previously denied similar deductions. This means that the taxpayer has a reasonable basis for claiming the deduction, and it is not necessary to meet the higher "more likely than not" or "clear and convincing evidence" standards. As long as the taxpayer has a good faith belief that the position is correct and was not frivolously taken, they may assert the tax position without needing to prominently disclose it on their tax return.

A Taxpayer Wishes to Assert a Tax Position Concerning the Deductibility