Which of the Following Is More Likely to Receive IRS

question 11

Multiple Choice

Which of the following is more likely to receive IRS scrutiny under the assignment of income doctrine?

• A)A corporation paying its shareholders a $20,000 dividend.
• B)A parent employing her child in the family business.
• C)A taxpayer gifting stock to his children.
• D)A cash-basis business delaying billing its customers until after year-end.
• E)None of the choices are correct.

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Definitions:

Negative Attitude

A general disposition or outlook characterized by pessimism, skepticism, or opposition toward ideas, people, or situations.

Ethnocentric

The belief in the superiority of one's own ethnic group over others.

Sales Division

A segment of a business organization that is responsible for selling the company's products or services.

Diversity

Refers to the inclusion of different types of people (such as people of different races, cultures, genders, etc.) within a group or organization.