Identify which of the following statements is true.
A)An individual taxpayer may be subject to a penalty for underpayment of estimated taxes if his balance of tax due when he files is $500.
B)A penalty for substantial understatement will potentially be assessed on an individual if the underpayment of tax exceeds the greater of 15% of the tax shown on the return or $5,000.
C)Substantial authority exists for a position that is supported by a decision rendered by the Court of Appeals for the taxpayer's own circuit.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Substantial authority for a tax position can indeed be established by a decision from the Court of Appeals for the taxpayer's circuit, reflecting the importance of circuit court rulings in tax law interpretation.

Identify Which of the Following Statements Is True