Final answer:
The statement is true. The relationship test in taxation includes unrelated parties who live with the taxpayer all year.
Step-by-step explanation:
The statement is true. In the context of taxation, the relationship test determines if someone can be claimed as a dependent by another taxpayer. According to the Internal Revenue Service (IRS), individuals who live with the taxpayer for the entire tax year and are not related to the taxpayer can still be considered members of the household if they meet certain criteria. This includes unrelated parties who live with the taxpayer all year.
For example, if a college student lives with their friend's family for the whole year and meets the other requirements, they could be considered a member of the household and potentially claimed as a dependent for tax purposes.