Identify Which of the Following Statements Is False

question 51

Multiple Choice

Identify which of the following statements is false.

• A) The TCMP audit program has been temporarily suspended by the IRS and replaced in part by lifestyle audits.
• B) The IRS is authorized to pay a reward to individuals who provide information resulting in increased collections.
• C) The majority of the individual tax returns that are audited are selected under the DIF program.
• D) All of the above are false.

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Definitions:

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and not on accumulated interest.

Contract

A legally binding agreement between two or more parties that outlines terms and conditions.

Required Rate

The minimum return or interest rate a lender demands or an investor expects to receive from an investment.

Simple Interest

Interest calculated only on the initial amount of a loan or principal, not on the interest previously earned.