Problem $18-23($Algo$)[$LO $18-6]$

The IRS assessed a $$41,600$ income tax deficiency plus $$5,080$ interest against Mr$.$ and Mrs$.$ Reczyk because of an alleged understatement of investment income. They refused to pay and took their case to the U$.$S$.$ Tax Court. The Reczyks incurred $$7,840$ attorney fees and other costs of the litigation. Indicate which costs the Reczyks are liable for in each of the following circumstances.

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.

Required:

The Reczyks won their case, and the IRS failed to demonstrate that its position was substantially justified.

check all that apply $1$

Deficiency of $$41,600$unanswered

Interest of $$5,080$unanswered

Attorney fees and litigation costs of $$7,840$unanswered

None of the choices is correct.unanswered

The Reczyks won their case, but the IRS convinced the court that its position was substantially justified.

check all that apply $2$

Deficiency of $$41,600$unanswered

Interest of $$5,080$unanswered

Attorney fees and litigation costs of $$7,840$unanswered

None of the choices is correct.unanswered

The Reczyks lost their case.

check all that apply $3$

Deficiency of $$41,600$unanswered

Interest of $$5,080$unanswered

Attorney fees and litigation costs of $$7,840$unanswered

None of the choices is correct.unanswered