The IRS Treats an Adjustment in Tax Resulting from an Unallowable

question 18

True/False

The IRS treats an adjustment in tax resulting from an unallowable item identified in a return as a correction of a mathematical or clerical error.

---

Definitions:

Equilibrium Quantity

The amount of products or services available and sought after at the balance price within a marketplace.

Opportunity Cost

Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

Consumer Surplus

The separation between the total amount consumers are equipped and willing to pay for a good or service and what is effectively paid.

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.