Ii the corporation prevails in a determination

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Unformatted text preview: s tax owed when the return is filed, interest must be paid at the rate prescribed by IRC §6621; therefore, Bass was subject to pay interest on the $400 tax payment made in 1995. There is no delinquency penalty if the taxpayer files its return, pays at least 90% of the tax due by the due date, and pays the balance due on or before the extended due date (all of which Bass Corp. complied with). Choices "b", "c", and "d" are incorrect, per the above discussion. CPA-02087 Type1 M/C A-D 30. CPA-02087 ARE Nov 95 #25 Corr Ans: B PM#42 R 3-01 Page 32 A corporation's tax year can be reopened after all statutes of limitations have expired if: I. The tax return has a 50% nonfraudulent omission from gross income. II. The corporation prevails in a determination allowing a deduction in an open tax year that was taken erroneously in a closed tax year. a. b. c. d. I only. II only. Both I and II. Neither I nor II. CPA-02087 Explanation Choice "b" is correct. If the p...
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