Which of the Following Statements About a Tax Deficiency Is

question 25

Multiple Choice

Which of the following statements about a tax deficiency is true?

• A)If a taxpayer is assessed a deficiency,the government will charge interest on the deficiency regardless of the reason for the deficiency.
• B)Individuals who pay interest on a tax deficiency can deduct it as an itemized deduction.
• C)Individuals who pay interest on a tax deficiency can deduct it as a business expense.
• D)Statements A.and B.are both true.

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Definitions:

Standard Deduction

A fixed amount that reduces the income subject to tax, available to taxpayers who do not itemize deductions.

Dependent

A person who relies on another, usually a family member, for financial support and qualifies for certain tax benefits.

Part-Time Job

Employment with fewer hours per week than a full-time job, often offering less benefits and lower wage compared to full-time positions.

Married Filing Jointly

A filing status for married couples that have chosen to combine their income and deductions on a single tax return.