Identify Which of the Following Statements Is True

question 61

Multiple Choice

Identify which of the following statements is true.

• A)Form 870-AD is used if the taxpayer and IRS representative agree to a lesser tax liability than that originally proposed by the Service.
• B)Signing of Form 870-AD by the taxpayer does not generally preclude the subsequent filing of a refund claim.
• C)The IRS will issue a 90-day letter (a Statutory Notice of Deficiency)if the taxpayer does not file a protest letter within 10 days of the date of the 30-day letter.
• D)All of the above are false.

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Definitions:

Standardized Test Statistic

A test statistic that has been converted into a standard form so that it can be directly compared to a distribution.

Rank Sum

A statistical measure used to compare the distributions of two or more groups by summing ranks assigned to their observations.

Alternative Hypothesis

A statistical hypothesis that suggests a difference or effect, contrary to the null hypothesis.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis, given the significance level of the test.