_____ 4 the Internal Revenue Service Has the Burden of Proof

question 18

True/False

_____ 4. The Internal Revenue Service has the burden of proof when it is asserting fraud with the intent to evade taxes on the part of the taxpayer.

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, often referred to as shareholders' equity or net worth.

Net Income

Net income is the ultimate profit a company achieves after subtracting all taxes, expenses, and costs from its total income.

Commercial Substance

A situation where the future cash flows of a business are expected to change significantly as a result of a transaction.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for sale.