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Which of the Following Statements Correctly Reflects the Rules Governing

Question 41

Multiple Choice

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) For noncorporate taxpayers,the rate of interest for assessments is the same as the rate of interest for refunds.
D) The IRS semiannually adjusts the rate of interest.

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