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.

---

Definitions:

Direct Labour

The labor costs directly associated with the production of goods or services, such as wages for workers on the production line.

Overhead Rate

A calculation used to allocate indirect costs to products or services, typically expressed as a percentage or ratio.

Architectural Entity

A concept or structure in the discipline of architecture that can refer to buildings, facilities, and even urban design elements.

Service Costing

A type of costing system that assigns costs to intangible products or services, capturing the expenses related to providing a service.