Choose wisely. There is only one correct answer to each question.
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1.
How long after filing your taxes should you keep your supporting documents and records?
Three years. The audit window is three years.
2.
Once the IRS has finished an audit of your tax return, you can still contest the findings.
True. There are appeal options, mediation and arbitration opportunities available.
3.
When it comes to collecting on back taxes, the IRS is more likely to take action to seize your primary residence if you have not cooperated with their efforts to collect back taxes.
True. The IRS will attempt to gain your cooperation in the payment of back taxes and will typically go after your residence only as a last resort if you are uncooperative.
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.
What is the most common IRS audit flag?
Math mistakes. Reviewing your return can reduce your chance of getting a letter from the IRS.
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.