Craig Commits Fraud on His Tax Return

question 17

Multiple Choice

Craig commits fraud on his tax return.It is found that he was $45,000 deficient in his tax because of the fraud.What would his penalty be?

• A)$45,000
• B)$33,750
• C)$78,750
• D)$0

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Definitions:

Consequential Damages

Compensation awarded in a legal case for losses that do not directly arise from the wrongful act but are a secondary result of the act, such as lost profits or loss of opportunity.

Unconscionable

Referring to a contract or deal that is so unjust or overwhelmingly one-sided in favor of the party with superior bargaining power that it is deemed unenforceable under the law.

Seller's Remedies

Legal actions or steps that a seller can take if a buyer fails to fulfill their part of a purchase agreement.

Breaches

Acts of breaking laws, rules, agreements, or promises, leading to legal consequences.