Identify Which of the Following Statements Is False

question 48

Multiple Choice

Identify which of the following statements is false.

• A)A Technical Advice Memorandum may be requested by an IRS auditor if the transaction in question involves an especially complex tax issue.
• B)If the taxpayer being audited does not concur with the proposed assessment, the Service is required to send the taxpayer a 30-day letter detailing the proposed changes and the available appeals process.
• C)During the audit process, if the taxpayer concurs with the assessment of tax by the IRS and signs Form 870 (Waiver of Restrictions on Assessment and Collection of Deficiency in Tax), then the taxpayer is precluded from filing a refund suit.
• D)Interest on a deficiency accrues from the due date of the return through the payment date.

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Definitions:

Numeraire

A standard unit of account in which prices and values are expressed; it serves as a measure for comparing the worth of goods or services.

Endowed

Provided with a quality, ability, or asset.

Perfect Substitutes

Goods that can be used in place of each other with no loss of utility by the consumer.

Perfect Complements

Goods that are always used together in fixed proportions, where an increase in demand for one leads to a corresponding increase in demand for the other.