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:

Long-Lasting Ties

Enduring relationships or connections between individuals, groups, or entities that are characterized by loyalty and mutual support.

Financial Comparisons

The action of evaluating and contrasting financial metrics, statuses, or situations between two or more entities or over time.

Close Friendships

Deep, significant personal relationships characterized by mutual affection, support, and a strong emotional bond.

Reciprocity

Mutual exchange of privileges, benefits, or actions between parties, where each party provides something of value to the other.