Identify the Rule That Determines Whether a Taxpayer Must Include

question 36

Multiple Choice

Identify the rule that determines whether a taxpayer must include in income a refund of an amount deducted in a previous year:

• A)Tax refund rule
• B)Constructive receipt
• C)Return of capital principle
• D)Tax benefit rule
• E)None of the choices are correct.

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Definitions:

Voluntary Mediation

A process where parties in dispute agree to seek a resolution with the help of a neutral third-party mediator without the involvement of a court.

Labor Dispute

Conflicts between employees and employers regarding working conditions, wages, contracts, or union rights.

Union Shop Clause

A provision in a collective bargaining agreement that requires employees to join the union within a certain period of employment.

Closed Shop Clause

A provision that requires employees to be members of a specific labor union as a condition of their employment.