Identify Which of the Following Statements Is False

question 23

Multiple Choice

Identify which of the following statements is false.

• A) The Tax Court can be used to litigate a tax issue without first paying the tax assessment.
• B) In general, the taxpayer has the burden of proof in Tax Court cases. However, the IRS has the burden of proof for issues raised after the issuance of the 90- day letter.
• C) A taxpayer may want to avoid using the Tax Court to litigate an issue because decisions from this court cannot be appealed.
• D) In order to litigate in the Tax Court, a petition must be filed within 90 days of the issuance of a notice of deficiency.

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Definitions:

Quality Of Information

Pertains to the degree of accuracy, reliability, and relevance of data or information, ensuring it is fit for making decisions.

Predictive Value

The capability of financial information to help users make accurate forecasts about future events or outcomes.

Confirmatory Value

The aspect of relevant financial information that helps users of financial statements confirm or correct prior expectations.

Mispriced Security

A financial security (such as a stock or bond) that is selling for a price significantly different from its intrinsic value.