A taxpayer who owes no tax and is not required to file a return may still want to file because:
- Filing is required to establish Social Security benefits.
- Failure to file results in an automatic IRS assessment.
- Filing is needed to establish residency for state tax purposes.
- Filing is the only way to claim a refund of withheld taxes, receive refundable credits (such as the earned income credit or additional child tax credit), or start the statute of limitations period. (correct answer)
Explanation: Taxpayers may voluntarily file to claim refunds of withheld taxes, refundable credits, or to start the assessment limitations period. Answer D is correct. Social Security benefits (A) are based on earnings, not filings. No automatic assessment for non-filers with no tax (B). State residency (C) is not determined by federal filing.