Which of the Following Is Not a Possible Result of an Audit

question 15

Multiple Choice

Which of the following is not a possible result of an audit by the IRS?

• A)Payment of a refund to the taxpayer
• B)Payment of a deficiency by the taxpayer
• C)An appeal
• D)No change in the liability
• E)All of the above are possible results

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Definitions:

Ponzi Scheme

A fraudulent investing scam promising high rates of return with little risk by paying earlier investors with the funds from more recent investors.

Bait And Switch

A deceptive marketing practice where customers are lured with the promise of a product or service at a certain price, only to find it unavailable and replaced with a more expensive option.

Account Kiting

The illegal practice of exploiting banking systems to create artificial funds by writing checks between several accounts.

Probable Cause

A standard of reasonable belief, based on facts, that is required to arrest a person, conduct a search, or seize property in legal proceedings.