Choose wisely. There is only one correct answer to each question.
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1.
When the IRS completes an audit of a taxpayer, what can the taxpayer do to appeal the IRS findings?
All of the above. These are the steps, usually followed in order, that a taxpayer would follow to appeal the results of an audit. This process is successful in lowering the tax bill for about half of those who contest the audit report.
2.
If a tax preparer promises to get you a big refund without having seen any of your documents, why might that be cause for concern?
Both of the above. The preparer might do both of these, if not either. Take such promises with a lot of caution.
3.
Which type of IRS audit takes place by mail?
Correspondence audit. This type of audit usually asks you to clarify something on your return.
4.
When a large tax bill looms, which of the following approaches is not likely to be successful?
Refusing to pay. The IRS is often willing to negotiate with citizens seeking to resolve an outstanding tax bill. A payment plan or other means of addressing the tax bill is most likely to be successful.
5.
A tax levy _______.
Seizes property in order to satisfy a tax debt. A levy is used when there are no other alternatives to get back taxes paid.
6.
Very large tax deductions on your tax return can look suspicious to the IRS if they are higher than the average for people in your income bracket.
True. The IRS uses income brackets to identify those who take large tax deductions.