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:

Prediction

An assertion concerning what will occur in a particular research investigation.

Female Defendants

Women who are being accused or are on trial in a court of law for committing a crime or civil offense.

Prison Sentences

Judicially determined penalties imposed on persons convicted of a crime, requiring time to be spent in prison.

Hypothesis

A proposed explanation for a phenomenon, based on observation, that can be tested through research and experimentation.