FATCA Enforcement Has Been Difficult Because the Internal Revenue Service

question 21

Multiple Choice

FATCA enforcement has been difficult because the Internal Revenue Service relies on ____ for reporting purposes.

• A)personal income tax returns
• B)employers and employees
• C)intermediaries (e.g., banks)
• D)foreign countries

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Definitions:

Consumer Surplus

represents the difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic welfare.

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, income, and transactions.

Opportunity Costs

The cost of the next best alternative foregone when a decision is made to choose one option over another.

Tax

Mandatory financial charges imposed by a government on individuals and organizations to fund public expenditures.