Unreasonable tax return position

Reference no: EM13132376

Roger prepared for compensation a Federal income tax return for Joan. Joan's return included an aggressive interpreation of the rules concerning overnight business travel. Roger is not liable for a preparer penalty for taking an unreasonable tax return position if:

a. Joan is assessed her own penalty for an understatement of tax due to disregard of IRS rules.

b. There was a resonable basis for Joan's interpreation of the travel deduction rules, and Joan disclosed the position in an attachment to the return.

c. The tax reduction attributable to the disputed deduction did not exceed $5,000.

d. The IRS found that the travel deduction was frivolous, but Joan disclosed the position in an attachment to the return.

Reference no: EM13132376

Questions Cloud

How much energy in joules is required : How much energy in joules is required to heat 295 mL of coffee from 25.0 0C to 62.0 0C? Assume that the coffee has the same density, 0.997 g/mL, and specific heat capacity, 4.184 rm J/(gc. K) .

Freddie preparer penalty : Freddie purposely omitted $100,000 of cash receipts that should have been reported as gross income. Freddie charged Peggy $6,000 to prepare the return. What is Freddie's preparer penalty?

Game theory-two person zero sum game : Two armies are advancing on two cities. The first army has 4 regiments and the second army has 3 regiments. At each city, the army that send more regiments to the city captures both the city and the opposing army regiment.

Explain treatment of compound with ozone : A colorless liquid A (C3H6O) was soluble in water and ether, and had a boiling point of 94-96 degrees C. it decolorized a Br2-CH2Cl2 solution and gave a positive ceric nitrate test, Treatment of Compound A with ozone, followed by hydrolysis in the ..

Unreasonable tax return position : Roger prepared for compensation a Federal income tax return for Joan. Joan's return included an aggressive interpreation of the rules concerning overnight business travel. Roger is not liable for a preparer penalty for taking an unreasonable tax r..

What is the pressure in the can : An aerosol spray can of deodorant with a volume of 320 mL contains 2.8 g of propane gas (C3H8) as propellant. What is the pressure in the can at 20 degrees Celsius?

Drawing venn diagrams : Make a venn diagram: 25 students play soccer, 4 boys play soccer and baseball, 3 girls play soccer and baseball, 10 boys play baseball, 4 girls play baseball

Partnership interest following distribution : The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. The basis of her partnership interest following the distribution is:

Calculate the mass of sodium iron produced : In a reaction 8200 g of sodium reacts with 74.00 g of ferric oxide to form sodium oxide and iron metal. Calculate the mass of sodium iron produced.

User Account

All Pages