Question

The two methods of judicial review of an administrative action taken by the Service in determining whether a taxpayer owes taxes are:

a. Release method and the deficiency method.
b. Refund method and the assessment method.
c. The refund method and the deficiency method.
d. The protest method and the deferral method.

Answer 1

The two methods of judicial review in tax matters are c)the refund method and the deficiency method, where taxpayers can either contest claims they've overpaid or dispute additional taxes owed.

Step-by-step explanation:

The two methods of judicial review of an administrative action taken by the Service, in the context of determining whether a taxpayer owes taxes, are: c. The refund method and the deficiency method. The refund method allows the taxpayer who believes they have overpaid their taxes to file a claim for a refund and litigate the matter if the claim is denied. The deficiency method involves the Service determining that additional tax is owed, issuing a deficiency notice, and the taxpayer having the right to litigate the claimed deficiency.