Every Year,the IRS Selects a Certain Number of Form 1040s

question 47

Multiple Choice

Every year,the IRS selects a certain number of Form 1040s for audit.What is the approximate average audit coverage rate (percentage of individual returns filed selected for audit) ?

• A)About 1%
• B)About 5%
• C)Between 10% and 12%
• D)None of the above

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Definitions:

Capital Flight

The quick transfer of substantial amounts of money or assets from a country as a result of its economic or political instability.

Technological Advances

Innovations and improvements in technology that enhance productivity, efficiency, and quality of life.

Microfinance

Financial services provided to individuals or small businesses in underserved markets or developing countries, often including small loans.

Imperfect Information

The absence of full knowledge concerning product characteristics, available prices, and so on.