Before recommending a tax position that meets the "substantial authority" standard,a tax return preparer should make sure that:
A) The taxpayer adequately understands the potential penalties associated with claiming a tax position that satisfies this reporting standard
B) The tax law does not impose a higher reporting standard on the particular transaction or matter at issue
C) A list of the authorities that support this position is attached to the taxpayer's tax return
D) The taxpayer adequately discloses to the IRS a minimum of one "recognized contrary authority" that fails to support the taxpayer's asserted position
Correct Answer:
Verified
Q1: A taxpayer is a licensed contractor who
Q2: A taxpayer wishes to assert a tax
Q3: A taxpayer ordinarily should not assert a
Q4: The "reasonable possibility of success" standard commonly
Q5: The use of estimates on a tax
Q7: A taxpayer is willing to make a
Q8: A taxpayer wishes to assert a tax
Q9: A taxpayer ordinarily should not assert a
Q10: For CPAs solely engaged in professional tax
Q11: A tax return preparer generally has a
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