A Six- Year Statute of Limitation Rule Applies If the Taxpayer

question 71

Multiple Choice

A six- year statute of limitation rule applies if the taxpayer

• A) understates AGI by 25%.
• B) understates gross income by 25%.
• C) understates taxable income by 25%.
• D) none of the above

---

Definitions:

Continuing Resolutions

Temporary funding measures used by governments to prevent operational shutdowns when formal budget bills have not been approved.

Budget Resolutions

Legislative measures specifying the broad levels of taxation and spending, setting the framework for the detailed budget process.

Congressional Suggestions

Recommendations or proposals made by members of Congress intended to guide legislative decisions or policy formations.

Functional Finance

A budget philosophy using fiscal policy to achieve the economy’s potential GDP, rather than balancing budgets either annually or over the business cycle.