Question

If a return is identified as including an unallowable item, the IRS:

a. Computes the seemingly necessary adjustment in taxes, and the taxpayer is notified by mail.
b. Sends a formal notice of deficiency to the taxpayer.
c. Considers the contact that it makes with a taxpayer under this circumstance to be an examination.
d. Cancels the return and asks the taxpayer to file his return again.

Answer 1

If a return is identified as including an unallowable item, the IRS computes the necessary adjustment in taxes, and the taxpayer is notified by mail.

Step-by-step explanation:

If a return is identified as including an unallowable item, the IRS computes the necessary adjustment in taxes, and the taxpayer is notified by mail. This means that the IRS will calculate the appropriate changes to the tax amount and inform the taxpayer through a mailed notification. It is important for taxpayers to review the notification and understand the adjustments made by the IRS.