TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the statement is false. Explain your answer in not more than two (2) sentences. A law that allows taxes to be paid either in cash or in kind is valid. When the financial position of the taxpayer demonstrates a clear inability to pay the tax, the Commissioner of Internal Revenue may validly compromise the tax liability. The doctrine of equitable recoupment allows a taxpayer whose claim for refund has prescribed to offset tax liabilities with his claim of overpayment. A law imposing a tax on income of religious institutions derived from the sale of religious articles is valid. A false return and a fraudulent return are one and the same.