If Fraud Is Involved, There Is No Time Limit on the Assessment

question 168

True/False

If fraud is involved, there is no time limit on the assessment of a deficiency by the IRS.

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Definitions:

Tax System

The set of laws and regulations that govern how taxes are collected from individuals, businesses, and other entities within a country or specific jurisdiction.

Progressive Tax

A tax system where the tax rate increases as the taxable income increases, typically designed to tax higher-income individuals more heavily.

Proportional Tax

A tax system where the tax rate is fixed and applied equally to all taxpayers, irrespective of income level.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.