Match each term with the correct statement below.
-The period of time during which a taxpayer and/or the IRS can correct a taxpayer's taxable income.

Question

Quizplus · Accepted Answer

The statute of limitations refers to the period of time during which a taxpayer and/or the IRS can correct a taxpayer's taxable income.

Answer: C
 Excise tax refers to a tax on specific goods, such as gasoline or tobacco.

Answer: L
 Self-assessment refers to the process by which a taxpayer calculates their own tax liability.

Answer: M
 The standard deduction is a fixed amount that can be subtracted from a taxpayer's income to lower their taxable income.

Answer: I
 The pay-as-you-go concept refers to the idea that taxpayers should pay their taxes throughout the year, rather than in one lump sum at the end of the year.

Answer: K
 Real property refers to land and any structures attached to it.

Answer: A
 Ad valorem tax refers to a tax based on the value of property, such as a property tax.

Answer: B
 Deduction refers to an expense or other item that can be subtracted from a taxpayer's income before calculating their tax liability.

Answer: G
 Loss refers to a negative difference between the purchase price and sale price of an asset.

Answer: F
 Gain refers to a positive difference between the purchase price and sale price of an asset.

Answer: P
 Tax credit refers to a dollar-for-dollar reduction in the amount of tax owed by a taxpayer.

Answer: H
 Ordinary income refers to income that is earned through regular business activities, such as wages or salaries.

Answer: O
 Tax base refers to the amount of income or value subject to taxation.

Match Each Term with the Correct Statement Below