Section 482 Is Used by the U

question 38

Multiple Choice

Section 482 is used by the U.S. Treasury to:

• A) Force taxpayers to use arms length transfer pricing on transactions between related parties.
• B) Reallocate income, deductions, etc., to a related taxpayer to minimize tax liability.
• C) Increase information that is reported about U.S. corporations with non-U.S. owners.
• D) All of these.
• E) None of these.

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Definitions:

Modified AGI

Adjusted Gross Income (AGI) altered by adding back certain deductions, often used to determine eligibility for specific tax benefits.

Joint Tax Return

A tax filing status for married couples who choose to file one tax return jointly, combining their incomes and deductions.

Qualifying Child

A dependent who meets specific IRS criteria regarding relationship, age, residence, and support, allowing taxpayers to claim certain credits and deductions.

Education Tax Credits

Tax credits that taxpayers can claim for eligible educational expenses, aimed at reducing the amount of tax owed to the government.