The Revenue Agent Who Audited Mr and Mrs Wilke's 2015

question 78

Multiple Choice

The revenue agent who audited Mr and Mrs Wilke's 2015 Form 1040 assessed a $40,200 deficiency and concluded that $13,900 of the deficiency resulted from Mr Wilke's deliberate disregard of the tax rules concerning business entertainment expense. The remaining deficiency resulted from various errors caused by confusing instructions on the tax forms. Compute the negligence penalty that the agent can impose.

• A) $8,040
• B) $3,475
• C) $2,780
• D) Only a federal court can impose a negligence penalty.

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Definitions:

Distinction

A difference or contrast between similar things or people, often highlighting a unique feature or quality.

Social-cognitive Theorist

A scholar who focuses on how people learn by observing others, and how they control their behavior through cognitive processes.

Moral Behavior

Actions that are in accordance with societal norms and values regarding right and wrong.

Think Morally

The process of evaluating actions and decisions based on ethical principles and considerations of right and wrong.