Identify which of the following statements is true.
A)Form 870-AD is used if the taxpayer and IRS representative agree to a lesser tax liability than that originally proposed by the Service.
B)Signing of Form 870-AD by the taxpayer does not generally preclude the subsequent filing of a refund claim.
C)The IRS will issue a 90-day letter (a Statutory Notice of Deficiency)if the taxpayer does not file a protest letter within 10 days of the date of the 30-day letter.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Form 870-AD is indeed used when the taxpayer and an IRS representative agree on a tax liability that is less than originally proposed. This form signifies an agreement to the adjustments and typically includes a waiver of restrictions on assessment and collection of the deficiency and a waiver of the right to claim a refund or credit for overpayment.

Identify Which of the Following Statements Is True