Identify Which of the Following Statements Is True

question 44

Multiple Choice

Identify which of the following statements is true.

• A)If a taxpayer has been audited in at least one of the two previous years on the same item and the earlier audit did not result in any additional tax owed, the taxpayer may qualify for the special audit relief rule.
• B)A taxpayer can request and always receive an exemption from an audit by the IRS if his return was audited in at least one of the two previous years and the previous audit did not result in any change to his tax liability.
• C)The signing of Form 870 allows the taxpayer to wait for 30 interest-free days after the billing date to pay the tax.
• D)All of the above are true.

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Definitions:

Automatic Processing

Refers to the subconscious aspect of information processing which is fast, occurs without intentional control, and requires minimal cognitive effort.

Expertise

The skilled knowledge or proficiency in a particular area or field gained through experience or training.

Detrimental Effects

Negative impacts or outcomes resulting from a particular action or condition.

Skill

The ability acquired through practice, training, or experience to do something well.