If a Taxpayer Has Insufficient Financial Means to Pay a Deficiency

question 63

True/False

If a taxpayer has insufficient financial means to pay a deficiency, the IRS may make an offer in compromise to settle for a lesser amount.

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Definitions:

Barter

An exchange system where goods and services are traded directly without the use of money as a medium.

Adam Smith

was an 18th-century Scottish economist and philosopher, best known for his works on the principles of free market economies.

Scottish Professor

Refers to academics from Scotland, particularly notable in areas such as philosophy, economics, and history, though not a specific individual or designation.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individuals' pursuit of their own interest leads to economic benefits for society as a whole.