Which of the Following Statements About the Outcome of an IRS

question 53

Multiple Choice

Which of the following statements about the outcome of an IRS audit is false?

• A)The most probable outcome of an audit is that the taxpayer will be assessed a deficiency.
• B)An audit never results in a refund of tax due to the taxpayer.
• C)If a revenue agent finds no mistakes on a return during an audit,the agent files a report concluding "no change."
• D)None of the above is false.

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Definitions:

Semi-Annual Payments

Payments made twice a year, often used in the context of loan repayments or bond interest payments.

Nominal Rate

The stated interest rate of an investment or loan, which does not account for compounding or inflation effects.

Monthly Compounded

A method where interest adds to the principal sum at the end of each month, allowing for the interest in the next month to be based on the new total.

Annuity Investment

A financial product typically sold by insurance companies that provides periodic payments to the holder for a defined period of time or for life.