Using the same facts from the previous problem, how would your answer change if Randy estimates that there is only a 20 percent chance that the position will be sustained upon audit or judicial proceeding? If the client takes this position on its tax return, will Randy be subject to penalty? Will the client potentially be subject to penalty?

In previous problem

Randy has found conflicting authorities that address a research question for one of his clients. The majority of the authorities provide
an unfavorable answer for his client. According to Randy’s estimates, if the client takes the more favorable position on its tax return then there is approximately a 48 percent chance that the position will be sustained upon audit or judicial proceeding.