Identify Which of the Following Statements Is False

question 48

Multiple Choice

Identify which of the following statements is false.

• A)A Technical Advice Memorandum may be requested by an IRS auditor if the transaction in question involves an especially complex tax issue.
• B)If the taxpayer being audited does not concur with the proposed assessment, the Service is required to send the taxpayer a 30-day letter detailing the proposed changes and the available appeals process.
• C)During the audit process, if the taxpayer concurs with the assessment of tax by the IRS and signs Form 870 (Waiver of Restrictions on Assessment and Collection of Deficiency in Tax), then the taxpayer is precluded from filing a refund suit.
• D)Interest on a deficiency accrues from the due date of the return through the payment date.

---

Definitions:

Gross Domestic Product

The total value of all goods and services produced within a country over a specific time period, serving as a broad measure of economic activity.

Marginal Propensity

The fraction of an additional amount of income that is spent on consumption. This is a key factor in determining the impact of an income change on the economy.

Aggregate Expenditures

The total amount of spending on goods and services in an economy at a given overall price level and in a given time period.

Spending Multiplier

the ratio of the change in total national income to the initial change in spending that brought it about, illustrating how initial spending leads to increased total spending in an economy.