A Taxpayer Can Avoid the Failure-To-File Penalty If an Extension

question 41

True/False

A taxpayer can avoid the failure-to-file penalty if an extension of the return's due date is granted by the IRS.

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Definitions:

Repairs Expense

Costs incurred in the maintenance of assets to keep them in their original condition, without adding to their value or extending their life.

Maintenance Expense

Costs incurred to keep property, equipment, or assets in efficient operating condition.

Par Value

A nominal value assigned to a security or share, representing its minimum stated value.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential dividends.