Which of the Following Holds True for the Internal Revenue

question 73

Multiple Choice

Which of the following holds true for the Internal Revenue Service (IRS) Whistleblowers Rewards Program?

• A) To be eligible to recover compensation from the IRS, a person must bring information to the Department of Justice.
• B) The whistleblower may receive compensation only from monies actually collected based on the information provided.
• C) The total collected proceeds based on which the reward is calculated exclude penalties, interest, additions to tax, and additional amounts.
• D) The reward to the whistleblower is independent of his contribution to the prosecution of the action.
• E) Under no circumstances does the IRS have the right to lower the amount of the reward given to the whistleblower.

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Definitions:

Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.

Free Lunch

An idiom expressing the idea that it is impossible to get something for nothing, disputing the possibility of receiving a benefit without providing compensation.

Economic Thinking

The analytical approach to address economic problems, considering costs and benefits in decision making.

Historical Generalizations

Broad statements derived from studying patterns and trends in history, often used to explain or predict social, political, or economic phenomena.