What Is the First Notice of a Proposed Deficiency That

question 2

Multiple Choice

What is the first notice of a proposed deficiency that a taxpayer receives?

• A)Examination letter
• B)90-day letter
• C)60-day letter
• D)30-day letter

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Definitions:

Annual Overhead Costs

Refers to the total expenses that are not directly tied to a specific product or service but are required for the business to operate, accumulated over a year.

Direct Labor Costs

The wages paid to workers who are directly involved in the production of goods or the provision of services.

Indirect Labor

Labor costs associated with support work that does not directly contribute to the manufacture of products or the provision of services, such as maintenance and supervisory wages.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including but not limited to utilities, rent, and salaries of support staff.