A Taxpayer Instructing Her Son to Collect Rent Checks for the Taxpayer's

question 124

Multiple Choice

A taxpayer instructing her son to collect rent checks for the taxpayer's property and to report this as taxable income on the son's tax return violates which doctrine?

• A)Constructive receipt doctrine
• B)Implicit tax doctrine
• C)Assignment of income doctrine
• D)Step-transaction doctrine
• E)None of the choices are correct.

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Definitions:

Corporate Profits Tax

A tax imposed by governments on the income earned by companies and corporations.

Labor Supply

The total amount of hours employees are ready and capable of working for a specified rate of pay.

Payroll Tax

A tax imposed on employers or employees, and is typically calculated as a percentage of the salaries that employers pay their staff.

Tax Shifting

The process whereby the economic burden of a tax is passed on from one group to another.