Various defenses to penalties based on the Internal Revenue Code standards of compliance are available to taxpayers. One of these is the reasonable basis standard. Which of the following statements is true regarding the reasonable basis standard?

a. It is a position that has more than a 50 percent chance of succeeding.

b. It is a position that has more than a 40 percent chance of succeeding but less than a more-than-50 percent chance of succeeding.

c. It is a position that has at least a 20 percent chance of succeeding, one that is arguable but fairly unlikely to prevail in court.

d. It applies only to tax shelters.