Which of the Following Is a False Statement? a Taxpayer

question 69

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 these.

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Definitions:

Misrepresentation

Misrepresentation refers to the act of providing false or misleading statements about a material fact, which someone relies on to their detriment in a contractual agreement.

Fraudulent Acts

Fraudulent acts involve intentional deception or misrepresentation made by a person or entity with the intent of gaining some unfair or dishonest advantage.

Over the Counter

Describes securities trading through a dealer network rather than on a centralized exchange, often for stocks that do not meet the requirements to be listed on major exchanges.

1934 Act

Refers to the Securities Exchange Act of 1934, which governs the trading of securities in the U.S., including the establishment of the SEC.