For the Following Tax Returns, Identify the Method the IRS

question 67

Essay

For the following tax returns, identify the method the IRS likely used to select the return for audit.
a. Dan made a mistake in adding his income on his tax return.
b. Juanita failed to report her salary from her second job on her tax return.
c. Michael and Venita deducted a relatively large amount of travel expenses on their tax return for their business. The travel expense is large relative to other taxpayers in similar businesses with similar levels of income.
d. Paul and Melissa recently went through a very nasty divorce. One of the issues was Paul's less than forthright accounting of his income in determining the appropriate level of alimony.

---

Definitions:

Information

Information comprises data and insights that are organized for a specific purpose, facilitating understanding or decision-making.

Views

Refers to the number of times a piece of content, such as a video, article, or post, has been seen or watched.

Structure

The arrangement or framework of identifiable relationships among components, elements, or parts of a complex entity or system.

Agency

The capacity of individuals or entities to act independently and make their own free choices.