What Is a Prime Reason That the IRS Has Found

question 31

Multiple Choice

What is a prime reason that the IRS has found it difficult to obtain information needed to examine the transfer pricing scheme of foreign parents with U.S. subsidiaries?

• A) The information is held by the foreign parent, which is beyond the jurisdiction of the U.S. taxing authority.
• B) Since transfer pricing is not a significant issue to multinational corporations, little information about it exists.
• C) United States does not have tax treaties with the most important countries involved in foreign direct investment in this country.
• D) Computer systems have not been adapted to receive the data from companies in foreign countries.

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Definitions:

Loses Power

Refers to a situation where a device or system experiences a reduction or complete loss of electrical energy.

BIOS Password

A BIOS password is a security feature that can be used to prevent unauthorized access to a computer by requiring a password check during the boot process.

Motherboard Jumper

A small connector used to close an electrical circuit on a motherboard, often for configuring hardware settings or resetting BIOS.

CMOS Battery

A small battery on a computer motherboard that provides power to the CMOS chip, retaining system settings such as the date and time when the computer is off.