Which of the following statements correctly reflects the rules governing interest to be paid on an individual's Federal tax deficiency or claim for refund?
A) The IRS has full discretion in determining the rate that will apply.
B) The simple interest method for calculating interest is used.
C) The rate of interest for assessments is one percentage point lower than the rate of interest for refunds.
D) The IRS adjusts the rate of interest quarterly.
Correct Answer:
Verified
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