Which of the Following Is a False Statement? a Taxpayer

question 7

Multiple Choice

Which of the following is a false statement? A taxpayer filing a fraudulent tax return:

• A)is potentially subject to criminal penalties.
• B)is potentially subject to civil penalties.
• C)is potentially subject to fines and a prison sentence.
• D)will have an unlimited statute of limitations for the fraudulent tax return.
• E)None of the choices are correct.

---

Definitions:

Tort Liability

Legal responsibility arising from wrongful acts or omissions other than breach of contract that cause harm or loss to another party.

Professional Service

Specialized work provided by individuals with expert knowledge or skills in a particular area.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with certain responsibilities, typically in financial or property matters.

Financial Adviser

A professional who provides expert advice on financial planning and investment strategies to individuals or businesses.