11. Which of the following reporting standards is higher: a. Substantial Authority versus Reasonable Basis? b. Realistic Possibility of Success versus More Likely Than Not? c. Reasonable Basis versus Realistic Possibility of Success? d. Substantial authority versus More Likely than Not?

12. Assume that the tax law does not prescribe a reporting standard for a particular tax position. a. What threshold standard should a tax return preparer apply to avoid penalties? b. What is the lowest threshold standard for asserting a tax position if the taxpayer is willing to disclose his use of such a standard?

13. Assume that the tax law does prescribe a reporting standard for a particular tax position. What threshold standard should a tax return preparer apply to avoid penalties?

14. After consulting with a tax adviser, a taxpayer believes that the odds of her state income tax return being audited are 80%. If audited, she believes that the odds of the state taxing authorities detecting and disallowing a certain deduction claim are 80%. If the state authorities disallow this deduction claim, she objectively believes that there is a 30% chance that a state tax court will overturn the state taxing authoritys decision and allow this deduction. a. What is the probability that she in fact will ultimately get the benefit of this deduction on her tax return? b. May she claim this deduction, without making special disclosures?