Question

A position will be reasonable if the position has _________, even if it is not disclosed. 2. For tax shelters, a position is treated as unreasonable unless it is reasonable to believe that the position has _________ of being sustained. 3. A return preparer may not adopt a position without ________ for the position. 4. In order to avoid penalties with a disclosed position, the tax preparer must believe that the position has _________ of being sustained. 5. ________ omits information necessary to determine the taxpayer's tax liability or is based upon the taxpayer's desire to impede the collection of tax. 6. ________ is a willful attempt to evade federal tax liability, even that of another person, and is subject to criminal penalties, including imprisonment.

Answer 1

1. A position will be reasonable if the position has substantial authority, even if it is not disclosed.

2. For tax shelters, a position is treated as unreasonable unless it is reasonable to believe that the position has A more likely than not chance of being sustained.

3. A return preparer may not adopt a position without Substantial Authority for the position.

4. In order to avoid penalties with a disclosed position, the tax preparer must believe that the position has A Reasonable Basis of being sustained.

5. A Frivolous Return omits information necessary to determine the taxpayer's tax liability or is based upon the taxpayer's desire to impede the collection of tax.

6. Aiding & Abetting is a willful attempt to evade federal tax liability, even that of another person, and is subject to criminal penalties, including imprisonment.

Step-by-step explanation: