After the Issuance of a Statutory Notice of Deficiency, Failure

question 16

Multiple Choice

After the issuance of a Statutory Notice of Deficiency, failure to timely file a petition with Tax Court will result in which of the following?

• A)The Internal Revenue Service will issue a 30-day letter
• B)The Internal Revenue Service will assess the tax it says the taxpayer owes
• C)The Internal Revenue Service will issue a 90-day letter.
• D)You will be required to post a deposit before being allowed to request an extension for time to file a petition.

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Definitions:

Deposits In Transit

Refers to money that has been received and recorded by a business but has not yet been recognized by the bank by the end of the accounting period.

Outstanding Checks

Checks that have been written and recorded in a company's financial records but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

NSF Check

A check that has been declined by a bank due to insufficient funds in the account it was drawn on.