A taxpayer can avoid a substantial understatement of tax penalty: if the position is frivolous and disclosed on the tax return. if the position has a realistic possibility of being sustained by the IRS or courts. if there is substantial authority to support the position. if the position has a reasonable basis and is not disclosed on the tax return. None of the choices are correct. Lebron received $76,300 of compensation from his employer and he received $545 of interest from a municipal bond. What is the amount of Lebron's gross income from these items? $0. $545. $76,300. $76,845. $76,300 compensation. The interest income is excluded from gross income because it is interest from a municipal (tax-exempt) bond.
