Question

QUESTION 39 Individuals may receive a 6-month automatic extension to file their tax return; that is, no explanation is required as long as the proper form is filed by the due date. True False QUESTION 40 To avoid the taxpayer penalty for substantial understatement of the tax liability due to a disclosed position, the taxpayer's position on the retum must, at a minimum, Have a reasonable basis. Have a realistic possibility of success. Have substantial authority Not be frivolous Be more likely than not (more than 50% chance) to succeed.

Answer 1

Answer 39,

True, individual may receive a 6 months extension to file there tax return, that is, no explanation required as long as proper is filed by the due date.

Answer 40,

Have a reasonable basis.

Answer 41,

Difference between internal revenue code and treasury regulations is:-

-Treasury regulations are designed to interpret the internal revenue code

- They are issued by The department of treasury with intent to provide guidance of the code.

- Final Treasury regulations are codified in the code of federal regulations and announced in the federal register as treasury decision.