Identify Which of the Following Statements Is False

question 17

Multiple Choice

Identify which of the following statements is false.

• A) Interest on a deficiency accrues from the due date of the return through the payment date.
• B) 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.
• C) 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.
• D) A Technical Advice Memorandum may be requested by an IRS auditor if the transaction in question involves an especially complex tax issue.

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Definitions:

Relative Frequency Approach

A method of probability assessment that involves observing the outcomes of a random experiment to estimate the probability of each outcome by dividing the number of times a specific outcome occurs by the total number of trials.

Long Term

Referring to an extended period of time, typically considered to be several years or more.

Past Data

Refers to previously collected or observed data used for analysis, comparison, or prediction.

Subjective Approach

A method based on personal opinions, interpretations, points of view, emotions and judgment.