Which Statement Concerning the Statute of Limitations Is Not True

question 44

Multiple Choice

Which statement concerning the statute of limitations is not true?

• A)The statute of limitations never ends if the return is fraudulent.
• B)If an individual (calendar year) taxpayer files a return for calendar year 2011 on March 15, 2012, the IRS normally may not assess an additional tax liability against the taxpayer after April 15, 2015 for reasons other than a false or fraudulent return, no return, or a substantial omission of income.
• C)The statute of limitations period does not change regardless of the amount of income that is omitted or deduction improperly claimed.
• D)The statute of limitations begins to run only if a return is filed.

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Definitions:

Parent's Cash Flows

The cash inflows and outflows directly associated with the primary operating entity in a group of companies or conglomerate.

AASB 121

Refers to the Australian Accounting Standards Board provision dealing with the effects of changes in foreign exchange rates.

Exchange Differences

Variance arising from translating foreign currency transactions or foreign operations into the reporting currency.

Presentation Currency

The form of money used to express the financial records of a company.