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:

Planning Budget

A planning budget is a financial plan that estimates the revenue and expenses for a specific period, typically used as a guide for spending and saving.

Revenue

The total income generated by a business from its normal business operations, including sales of goods and services.

Planning Budget

A budget formulated at the beginning of the budgeting period that is based on planned operations and outputs.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.