If a person fails to file a required return or files a false return, what action may the Commissioner take?

• A. Make or amend the return from the Commissioner's own knowledge and from information obtainable through testimony or otherwise
• B. Automatically impose penalties without adjusting the return
• C. Dismiss the case and take no action
• D. Suspend the taxpayer's license until compliance

Answer: (A)

When someone doesn’t file a required return or files a false one, the Commissioner is empowered to reconstruct the tax liability by making or amending the return using his own knowledge and information obtainable through testimony or other sources. This allows the government to determine the correct tax due even in the absence of an accurate taxpayer filing. It’s a practical remedy that keeps revenue flowing and supports enforcement, because it bases the assessment on reliable information rather than incomplete or misleading filings. The other actions listed don’t capture this authority: penalties can be applied as part of enforcement, but the immediate remedy described is to make or amend the return; dismissing the case or suspending a license are not the actions provided by this specific power.