Identify which of the following statements is true.
A)If a taxpayer has been audited in at least one of the two previous years on the same item and the earlier audit did not result in any additional tax owed, the taxpayer may qualify for the special audit relief rule.
B)A taxpayer can request and always receive an exemption from an audit by the IRS if his return was audited in at least one of the two previous years and the previous audit did not result in any change to his tax liability.
C)The signing of Form 870 allows the taxpayer to wait for 30 interest-free days after the billing date to pay the tax.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Option A is the only true statement. The special audit relief rule allows taxpayers to avoid audits if they have been audited on the same item in the previous two years and no additional tax was owed. Option B is false because a taxpayer cannot request an exemption from an IRS audit. Option C is false because signing Form 870 does not allow a taxpayer to wait for interest-free days to pay their taxes.

Identify Which of the Following Statements Is True