Identify which of the following statements is true.
A)If a taxpayer fails to file a return, the statute of limitations is extended to 10 years.
B)If a couple files a joint return but only one spouse had income, only the spouse with income is responsible for paying any tax due.
C)Joint and several liability means that each spouse is potentially liable for the full amount of tax due.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Joint and several liability means that each spouse is potentially liable for the full amount of tax due. The other statements are false. The statute of limitations is only extended to 6 years if a taxpayer fails to file a return, and both spouses are responsible for any tax due on a joint return, regardless of which spouse had income.

Identify Which of the Following Statements Is True