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In which situation involving a taxpayer's understated tax liability would an IRC Section 6694 preparer penalty be most likely to be waived? A taxpayer's nondisclosed
In which situation involving a taxpayer's understated tax liability would an IRC Section 6694 preparer penalty be most likely to be waived?
A taxpayer's nondisclosed tax position lacked substantial authority. There was reasonable doubt that the taxpayer qualified for certain tax credits. There was reasonable cause for the understatement and the preparer acted in good faith. A taxpayer's disclosed tax position does not have a reasonable basis.
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