Which of the Following Is a False Statement? a Taxpayer

question 61

Multiple Choice

Which of the following is a false statement? A taxpayer filing a fraudulent tax return:

• A) is potentially subject to criminal penalties.
• B) is potentially subject to civil penalties.
• C) is potentially subject to fines and a prison sentence.
• D) will have an unlimited statute of limitations for the fraudulent tax return.
• E) None of the above.

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Definitions:

Strict Liability

A legal principle that holds a party responsible for damages or harm caused without the need to prove negligence or fault.

Contributory Negligence

A legal principle where the plaintiff is partially responsible for the harm caused and the compensation may be reduced accordingly.

Dry-Cleaning Chemicals

Dry-cleaning chemicals are solvents used in the dry-cleaning process to remove stains from fabrics without the use of water, commonly including perchloroethylene.

Vicarious Liability

The responsibility of one person or entity for the actions of another person, typically in an employer-employee relationship.