Cheng Filed an Amended Return This Year, Claiming a Refund

question 56

True/False

Cheng filed an amended return this year, claiming a refund relative to her tax computation on a prior-years return.
When the IRS approves the amended return and issues the refund, it also pays Cheng interest with respect to the overpayment.

---

Definitions:

Future Value

The value of an investment or cash flow at a specified future date, considering the applied interest rate or rates of return.

Cash Flow Stream

A cash flow stream is a series of cash inflows and outflows over a period of time, typically used in financial analysis to determine the value or profitability of an investment.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.