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5. Which of the following is true about the current rules regarding auditing of pass-through entities (partnerships and S corporations)? a. Investors are required to treat flow-through items consistently on their retums as reported on the K1 received from the entity unless they specifically disclose otherwise on their retum. b. There is no electing out of these rules regardless of the size of the entity. c. The partnership itself can never be liable to pay the tax liability resulting from an audit. d. Two of the above statements are true. e. All three (a-c) of the above statements are true. 16. Which of the following is a true statement regarding private letter rulings? a. Private letter rulings may be used and cited as precedent. b. Once a private letter ruling is submitted, it may not be changed or modified by the taxpayer. c. A private letter ruling request may be withdrawn by the taxpayer at any point priorto the IRS signing it. d. One reason to get a private letter ruling is that it is an expedited process compared to other forms of advice. e. The issuance of private letter rulings is generally a free govermment service to requesting taxpayers. 12. Which of the following statements regarding signed extensions to the statute of limitations (SOL) is false? a. A Form 872-T (termination of an open-ended waiver of the SOL) may be sent to any service center (campus) for processing. b. A taxpayer can terminate an open-ended waiver at any time by signing a Form 872T, which then gives the IRS 90 days to assess. c. It is possible to sign a restricted consent limiting the extension of the SOL to one or more specified issues. d. The most common extension is a fixed-date extension. e. The IRS will usually ask the taxpayer to sign an extension 9-12 months before the expiration of the SOL

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