ch02 Student: ___________________________________________________________________________ 1. Corporations are required to file a tax return annually regardless of their taxable income. True False 2. The tax return filing requirements for individual taxpayers only depend on the taxpayer's filing status. True False 3. If a taxpayer is due a refund, she does not have to file a tax return. True False 4. If April 15 th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17 th . True False 5. 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. True False 6. An extension to file a tax return does not extend the due date for tax payments. True False 7. The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed. True False 8. For fraudulent tax returns, the statute of limitations for IRS assessment is ten years. True False 9. The IRS DIF system checks each tax return for mathematical mistakes. True False 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. True False 11. Office examinations are the most common type of IRS audit. True False 12. The three basic types of IRS examinations are computer exams, office exams, and business exams. True False 13. The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree to the proposed IRS adjustment. True False 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. True False 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. True False
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 th 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. True False 17. If a taxpayer loses a case at the Circuit Court level, he is granted an automatic appeal hearing with the Supreme Court. True False 18. The Internal Revenue Code and tax treaties are examples of statutory authorities.
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