What must taxpayers do when they file for an extension?

Estimate how much tax will be owed and pay the estimate with the extension

Pay the exact balance owed when filing the extension

Execute a promissory note to the U$.$S$.$ Treasury for the exact balance owed

File the return only when the extension expires

What must an S corporation do to file after March $15$ without a penalty?

$$ Request a $6-$month extension to file before March $15$

Request a $6-$month extension to file before April $15$

File the return on or before April $15$

Request a $7-$month extension to file before March $15$

How much is the penalty for substantial understatement of tax?

$5\%$ of understatement

$20\%$ of understatement

$25\%$ of understatement

$40\%$ of understatement

Under which circumstance would the statute of limitations increase to six years?

Gift tax returns

Death of the taxpayer

Fraudulent omission of income

Substantial omission of income

Which action refers to a situation where the facts have not yet occurred?

Preparing a federal tax return

Evaluation for an open$-$fact pattern

O Consultation for a closed$-$fact pattern$$

Consultation for a completed transaction