A tax practitioner can avoid IRS penalty relating to a tax return position:

Question

Quizplus · Accepted Answer

A tax practitioner can avoid IRS penalties for a tax return position if the position has a reasonable basis and is disclosed on the tax return. This means that the position was based on a good faith belief, supported by relevant facts and circumstances, and the tax practitioner followed all relevant tax laws and regulations. Disclosure is also necessary to avoid the penalties, which includes filing the appropriate forms or explaining the position on the tax return. Options A, B, and C describe higher levels of certainty than the reasonable basis standard required to avoid penalties.

A Tax Practitioner Can Avoid IRS Penalty Relating to a Tax