Terry Files His Return on March 31

question 3

Multiple Choice

Terry files his return on March 31. The return shows taxes of $6,000, and Terry pays this entire amount when he files his return. By what time must he file a claim of refund?

• A)the later of two years from the return filing or three years from the date the tax is paid
• B)the later of three years from the return due date or two years from the date the tax is paid
• C)two years from the payment of tax date, if the IRS mails a notice of deficiency in the third year following the due date of the return
• D)four years from the payment of tax date, if the IRS mails a notice of deficiency

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Definitions:

Break-Even Point

The point at which total costs equal total revenue, meaning no net loss or gain is incurred from business activities.

Tiling Grout

A mixture used to fill in the gaps between tiles once they have been set in place, ensuring stability and a finished look.

Unit Sales

The total number of individual units of a product sold in a specific period.

Net Operating Income

Represents the earnings derived from a company's ongoing, regular business activities, underscored by subtracting day-to-day expenses from total income.