The IRS Agent Auditing the Return Will Not Issue an RAR

question 98

True/False

The IRS agent auditing the return will not issue an RAR if the taxpayer owes no additional taxes.

---

Definitions:

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the model.

Inspection Cost

Expenses associated with the activities necessary to ensure that products or services meet the required standards and specifications.

Contribution Format

A format for the income statement that divides variable costs from fixed costs to emphasize the contribution margin.

Fixed Expenses

Costs that do not vary with the level of output or sales, such as rent and salaries.