Which of the Following Is More Likely to Receive IRS

question 93

Multiple Choice

Which of the following is more likely to receive IRS scrutiny under the assignment of income doctrine?

• A) A cash-basis business delaying billing its customers until after year end.
• B) A taxpayer gifting stock to his children.
• C) A parent employing her child in the family business.
• D) A corporation paying its shareholders a $20,000 dividend.
• E) None of the choices are correct.

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Definitions:

Leading Cause

The primary factor or condition responsible for a particular effect or result, often used in the context of diseases or deaths.

Death

The end of life in a biological organism; the cessation of all vital functions or processes.

Canada

A country in North America known for its vast landscapes, multicultural communities, and bilingual (English and French) heritage.

Black Plague

describes the devastating pandemic caused by the bacterium Yersinia pestis, which resulted in millions of deaths in Europe during the 14th century.