The disclosure of a tax return position will reduce or eliminate an accuracy-related penalty on the taxpayer in which of the following circumstances?

The position is frivolous

The position is not properly substantiated

The position concerns a tax shelter with substantial authority

The position does not concern a tax shelter and has a reasonable basis

Question

Business

Valentin Buck

15 June, 22:03

The disclosure of a tax return position will reduce or eliminate an accuracy-related penalty on the taxpayer in which of the following circumstances?

The position is frivolous

The position is not properly substantiated

The position concerns a tax shelter with substantial authority

The position does not concern a tax shelter and has a reasonable basis

+1

Answers (1)

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Micaela Silva · Answer 1

The position does not concern a tax shelter and has a reasonable basis

Explanation:

A disclosure of a tax return can either reduce or eliminate an accuracy related penalty if:

it isn't frivolous it does not involve a tax shelter (disclosure is required, not optional, if tax shelters are involved) has a reasonable basis is properly substantiated