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:

Hot Flash

An effect of menopause consisting of a period of intense warmth, flushing, and perspiration, typically lasting 1–2 minutes.

Perimenopause

describes the transitional phase leading up to menopause, characterized by changes in menstrual cycle, hormone levels, and onset of menopausal symptoms.

Power Surge

A sudden and significant increase in power, strength, or energy, often used metaphorically to describe personal empowerment.

One-Parent Families

Family units consisting of one parent living with their child or children, often due to separation, divorce, or widowhood.