Identify which of the following statements is true.
A)The "innocent spouse provision," if applicable, relieves both spouses from an assessment of tax caused by a spouse's understating income or gain and/or overstating deductions, losses, or credits.
B)The IRS is precluded from assessing any residual tax liability against transferees and fiduciaries because the initial filers are responsible for meeting the tax payments in a timely fashion.
C)Treasury Department Circular 230 regulates the practice of attorneys, CPAs, enrolled agents, and enrolled actuaries before the IRS.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Treasury Department Circular 230 does regulate the practice of attorneys, CPAs, enrolled agents, and enrolled actuaries before the IRS. A is false because the "innocent spouse provision" only relieves one spouse from an assessment of tax caused by the other spouse's actions. B is false because the IRS can assess residual tax liability against transferees and fiduciaries if the initial filers do not meet their tax payments in a timely fashion.

Identify Which of the Following Statements Is True