Which of the Following Statements Regarding Refund Claims Is True

question 7

Multiple Choice

Which of the following statements regarding refund claims is true (assuming that the taxpayer does not wish to file suit in the Tax Court) ?

• A)If no tax return is filed, a refund claim must be filed within two years of the date the tax was paid.
• B)A refund claim must be filed within three years from the date the tax return to which it relates was filed, or if later, within two years of the actual payment of the tax.
• C)If a return is filed and tax is paid, the amount of the refund may not exceed the tax paid within the three-year period.
• D)If a refund is claimed after three years from the date the return is filed (or was due), but within two years of the payment of the tax, the refund amount may not exceed the amount paid during the last two years.
• E)All of the above statements are true.

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Definitions:

Federal Law

Legislation enacted by the national government or Congress of a country.

State Law

Refers to laws that are enacted and enforced by individual U.S. states, governing within their own territory.

Corporate Taxation

The process or system of taxing the income or profits of corporations and other business entities.

Quorum

The minimum number of members required to be present at a meeting to legally conduct business.