In Case of Underpayment of Taxes, If the Deficiency Is

question 6

Multiple Choice

In case of underpayment of taxes, if the deficiency is not paid in a timely fashion, interest is imposed on the unpaid amount for a period that begins on the date of:

• A) Filing return and ends on the date of payment or the last working day of the respective year, whichever is later.
• B) Filing return and ends on the date of payment.
• C) The notice and demand and ends on the date of payment.
• D) The notice and demand and ends on the date when the taxpayer receives the notice.

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Definitions:

Opportunity Cost

The cost of the next best alternative that is forgone when making a decision.

Scenario 1-5

A series of hypothetical or planned situations used for strategic planning, decision making, or analysis, labeled numerically for differentiation.

Working

Engaging in a physical or mental activity to achieve an objective, often to earn an income.

Opportunity Cost

The loss of potential gain from other alternatives when one particular option is chosen over others.