When Items of Income Are Omitted Because the Cost of the Time

question 81

Multiple Choice

When items of income are omitted because the cost of the time and effort of the taxpayer to accumulate the information, it is an application of the

• A)Ability to Pay Concept.
• B)Administrative Convenience Concept.
• C)Arm's-Length Transaction Concept.
• D)Capital Recovery Concept.
• E)Pay-as-You-Go Concept.

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Definitions:

Enumerated Power

Specific powers granted to the federal government by the Constitution.

Interstate Commerce

Economic, commercial, or transportation activities that cross state boundaries or involve more than one state, subject to federal regulation.

Equal Protection

A constitutional principle in the Fourteenth Amendment of the U.S. Constitution that requires states to apply the law equally and not discriminate against individuals or groups.

Executive Power

The authority granted to government executives, such as presidents or governors, to enforce laws and manage the administration of government.