Which of the Following Is an Example of Tax Evasion

question 140

Multiple Choice

Which of the following is an example of tax evasion?

• A)Beth invests money in tax exempt municipal bonds instead of corporate bonds.
• B)Bryan uses the cafeteria plan offered by his employer to fund pension plan contributions for his retirement.
• C)Bauregard, a very wealthy 87-year-old individual, gives bonds to each of his grandchildren so that the interest income on them would be taxed at a lower tax rate.
• D)Bertha won $500 cash in an amateur mud-wrestling contest but doesn't report it on her tax return.
• E)All of the above are examples of tax evasion.

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