Identify Which of the Following Statements Is True

question 92

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) The signing of Form 870 allows the taxpayer to wait for 30 interest- free days after the billing date to pay the tax.
• C) 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.
• D) All of the above are true.

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Definitions:

Rate Of Return

The upward or downward movement in the worth of an investment for a predefined interval, calculated as a percentage of the investment's inaugural cost.

Discount Rate

The Discount Rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Predicting Variables

Variables in statistical models that are used to predict outcomes or responses of interest.

Regression Analysis

A statistical method used to model the relationship between a dependent variable and one or more independent variables.