For the Following Tax Returns, Identify the Method the IRS

question 67

Essay

For the following tax returns, identify the method the IRS likely used to select the return for audit.
a. Dan made a mistake in adding his income on his tax return.
b. Juanita failed to report her salary from her second job on her tax return.
c. Michael and Venita deducted a relatively large amount of travel expenses on their tax return for their business. The travel expense is large relative to other taxpayers in similar businesses with similar levels of income.
d. Paul and Melissa recently went through a very nasty divorce. One of the issues was Paul's less than forthright accounting of his income in determining the appropriate level of alimony.

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Definitions:

Productive Activity

Any task or action that contributes to achieving a goal, generating outcomes, or creating value.

Consumable Goods

Items that are intended to be bought, used, and then replaced after their value has been fully consumed or they can no longer be used.

Social Gerontology

A field of study that examines the social aspects of aging, including the relationships, roles, and societal impacts on older adults.

Social Contacts

Interactions with others that can range from casual encounters to deeper relationships, important for social development and support.