Indicate whether the following statements are "True" or "False" regarding the statute of limitations. a. If no return is filed or a fraudulent return is filed, assessments can be made at any time. b. If a taxpayer omits an amount of gross income in excess of 25 percent of the gross income stated on the return, the statute of limitations does not apply. c. In general, any tax that is imposed must be assessed within three years of the later of (a) the filing date of the return or (b) the unextended due date of the return. d. The statute of limitations may be extended for a fixed period of time by mutual consent of the IRS and the taxpayer.

Indicate whether the following statements are "True" or "False" regarding the statute of limitations. a. If no return is filed or a fraudulent return is filed, assessments can be made at any time. b. If a taxpayer omits an amount of gross income in excess of 25 percent of the gross income stated on the return, the statute of limitations does not apply. c. In general, any tax that is imposed must be assessed within three years of the later of (a) the filing date of the return or (b) the unextended due date of the return. d. The statute of limitations may be extended for a fixed period of time by mutual consent of the IRS and the taxpayer.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 7P

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If the IRS owes a taxpayer a refund, the law generally provides that the IRS must pay interest on the refund if it is not paid within __________ days of the tax-payer filed his or her tax return or claim for refund. 30 45 60 90 None of the above
Which ONE of the following statements is true regarding the Canada Revenue Agency's (CRA's) right to reassess an income tax return? (a) A tax return may be reassessed at any time if the taxpayer made any misrepresentation that is attributable to carelessness. (b) A tax return for an individual may be reassessed within four years of the date on which the original assessment was mailed.
Which of the following statements is false? Select one: O A. In general, individual taxpayers are required to file a tax return only if their gross income exceeds the standard deduction OB. The penalty for failure to file is more severe than the penalty for failure to pay OC. Taxpayers may file a tax return even when they are not required to do so to obtain a refund of income taxes withheld OD. Individual tax returns are always due on April 15 for calendar-year individuals
Indicate whether the following statements are "True" or "False" regarding the administrative powers of the IRS. a. If the taxpayer meets the record-keeping requirement and substantiates income and deductions properly, the IRS bears the burden of proof in establishing a tax deficiency during litigation. b. The Code permits the IRS to assess a deficiency and to demand payment for the tax. However, no assessment or effort to collect the tax may be made until 30 days after a statutory notice of a deficiency (a 30-day letter) is issued. c. If the taxpayer neglects or refuses to pay the tax after receiving the demand for payment, a lien in favor of the IRS is placed on all property (realty and personalty, tangible and intangible) belonging to the taxpayer.
Tax Drill - Interest Applicable to Federal Tax Underpayments Complete the following statements regarding the interest applicable to Federal tax underpayments and overpayments. IRS interest is compounded . IRS Deficiency Assessments Interest usually accrues from the until days after the taxpayer agrees to the deficiency by signing Form 870. If an overpayment is refunded to the taxpayer within days after the date the return is filed or is due, no interest is allowed. When the taxpayer files an amended return or makes a claim for refund of a prior year's tax, interest is authorized from the due date of the return through the date when the
If the applicable statute of limitations on assessment of a tax deficiency has expired and a taxpayer signs a Form 872 extending the statute of limitations, the statute of limitations on assessment is extended. a). True b). False.
TRUE OR FALSE? The levy may be repeated until the full amount due, including all expenses is collected. Under Title I, Sec. 3 of the National Internal Revenue Code, the BIR shall be headed by the Commissioner and to be assisted by four (4) deputy commissioners. Whenever there is a violation of the due process of law, the taxpayer may file a motion for cancellation to the BIR or Court to stop the tax assessment.
Which of the following statements is correct? a.The taxpayer has the right to object to a tax assessment anytime after receiving an Assessment Notice. b.The taxpayer must state the grounds of objection in his/her Notice of Objection c.The Tax Commissioner must accept a Return once it is filed on time. d.The Taxpayer has the right to object to an assessment within the timeframe specified on the Assessment Notice.
Failure to furnish a completed copy of a prepared tax return no later than the time such return is presented for taxpayer signature may be subject to a penalty of?
14. If the taxpayer failed to pay the tax demanded per final assessment, the government may exercise several administrative remedies. Which of the following is not correct? Levy of real property of the taxpayer may be availed of only after distraint of personal property of taxpayer. Either distraint or levy may be pursued simultaneously once the assessment becomes final and demandable. If the tax assessed is P 100 and below, levy or distraint may not be availed of. The remedy of distraint of personal property may be repeated if necessary until the full amount due and all expenses are collected.
Which of the following statements NOT correct? a. If a taxpayer is not in agreement with the decision of the Tax Appeals Authority, there is no further action that the taxpayer can take. b. Where a taxpayer loss an appeal, the taxpayer is required to pay interest on the unpaid tax from the payment date statement on the Decision Notice. c. Tax planning within the confines of the tax laws is not illegal. d. Effective tax management may result in significant cost savings.
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