Which of the following statements regarding material participation is FALSE?

Multiple choice question.

A taxpayer can be deemed to be materially participating due to prior years of service.

A taxpayer can be materially participating by being involved in more than one activity if the total hours of involvement meet certain levels.

A taxpayer must be involved in a business on a full$-$time basis throughout the year to be considered materially participating.

A taxpayer's involvement does NOT have to exceed $500$ hours a year in one activity to be considered materially participating if other tests are met.