Corporations are required to file a tax return annually regardless of their taxable income.
The tax return filing requirements for individual taxpayers only depend on the taxpayer's filing status.
If a taxpayer is due a refund, she does not have to file a tax return.
If April 15
falls on a Saturday, the due date for individual tax returns will be on Monday, April 17
If a taxpayer is unable to file a tax return by its original due date, the taxpayer can request an automatic 9-
month extension to file the return.
An extension to file a tax return does not extend the due date for tax payments.
The statute of limitations for IRS assessment generally ends four years after the date a tax return is
For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.
The IRS DIF system checks each tax return for mathematical mistakes.
10. Joel claimed a high amount of charitable contributions as a deduction on his tax return relative to
taxpayers with similar income levels. The information matching program is the IRS program most likely
to identify Joel's tax return for audit.
11. Office examinations are the most common type of IRS audit.
12. The three basic types of IRS examinations are computer exams, office exams, and business exams.
13. The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree to the
proposed IRS adjustment.
14. The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a
petition in the U.S. District Court to hear the case.
15. If a taxpayer has little cash and a very technical tax case that she feels very strongly that the tax rules
are "on her side," she should prefer to have her case tried in the U.S. Tax Court.
16. In researching a tax issue, Eric finds that the U.S. Circuit Court of Appeals for the Federal Circuit
previously has ruled in favor of his tax position, whereas the 11
Circuit (Eric's circuit) previously has
ruled against his tax position. If Eric is contemplating litigating his tax position with the IRS, he should
prefer to have his case first tried by the U.S. Tax Court.
17. If a taxpayer loses a case at the Circuit Court level, he is granted an automatic appeal hearing with the
18. The Internal Revenue Code and tax treaties are examples of statutory authorities.
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