Suppose That You Are Not Able to Complete Your Tax

question 56

Multiple Choice

Suppose that you are not able to complete your tax returns by April 15.Which of the following statements is most accurate?

• A)You must provide adequate need in tax court,requesting extension of the deadline.
• B)You can apply for an automatic extension - no questions asked,but you must enclose a check in payment for estimated taxes due.
• C)You may have an extension,and the taxes are not due until the extension expires.
• D)You do not have to pay interest on any taxes due on April 15,provided that you have filed for and have an approved extension prior to April 1 of the tax year.

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Definitions:

Transaction Costs

The expenses associated with buying or selling goods, services, or financial instruments, which may include commissions, fees, and bid-ask spreads.

Fair Value

A financial term for the estimated worth of an asset or liability, based on current market conditions.

Commercial Paper

An unsecured, short-term debt instrument issued by companies to finance payroll, receivables, and other short-term liabilities.

Secured Notes

Debt instruments that are backed by a security interest in the borrower's assets, providing more assurance of repayment to the lender.