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

A. only if the position has a more likely than not chance of being sustained by the IRS or courts.

B. if the position has a realistic possibility of being sustained by the IRS or courts.

C. if there is not substantial authority to support the position.

D. if the position has a reasonable basis and is disclosed on the tax return.

E. None of these.

Answer: D. if the position has a reasonable basis and is disclosed on the tax return.

Which of the following is a false statement? A taxpayer filing a fraudulent tax return:

A. is potentially subject to criminal penalties.

B. is potentially subject to civil penalties.

C. is potentially subject to fines and a prison sentence.

D. will have an unlimited statute of limitations for the fraudulent tax return.

E. None of these.

Answer: E. None of these.

For which of the following tax violations is a civil penalty not imposed on taxpayers?

A. failure to file a tax return.

B. failure to pay tax owed.

C. fraud.

D. failure to make estimated tax payments.

E. None of these.

Answer: E. None of these.

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

A. if the position is frivolous and disclosed on the tax return.

B. if the position has a realistic possibility of being sustained by the IRS or courts.

C. if there is substantial authority to support the position.

D. if the position has a reasonable basis and is not disclosed on the tax return.

E. None of these.

Answer: C. if there is substantial authority to support the position.

Edie would like to better understand a new code section enacted four weeks ago. Which of the following authorities will help Edie understand the newly enacted code section?

A. IRS regulations

B. U.S. Tax Court cases

C. Committee reports

D. IRS revenue rulings

E. None of these.

Answer: C. Committee reports

If the President vetoes tax legislation, Congress:

A. cannot override the President's veto.

B. can override the President's veto with a 50 percent positive vote in the House and Senate.

C. can override the President's veto with a 2/3rd positive vote in the House and Senate.

D. can override the President's veto with a 75 percent positive vote in the House and Senate.

E. None of these.

Answer: C. can override the President's veto with a 2/3rd positive vote in the House and Senate.