Mr and Mrs

question 76

Multiple Choice

Mr. and Mrs. Pitt filed a joint tax return last year. The couple divorced this year. The IRS audited their last year's return and determined that the Pitts had underpaid their tax by $38,200. Which of the following statements is true?

• A) The IRS can assess either Mr. Pitt or Mrs. Pitt for the entire deficiency.
• B) Because the couple is divorced, the IRS must assess Mr. Pitt with a $19,100 deficiency and Mrs. Pitt with a $19,100 deficiency.
• C) Because the couple is divorced, the IRS must apportion the deficiency between Mr. and Mrs. Pitt based on their relative contribution to taxable income.
• D) The IRS must assess whichever spouse actually prepared the return for the entire deficiency.

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Definitions:

Crushing Injury

A type of injury where a part of the body is subjected to a high degree of force or pressure, often resulting in compression and significant damage to the area.

Net Earnings

The amount of income left after deductions, such as taxes and social security charges, have been subtracted from gross income.

Paycheck

A document or electronic transfer that provides payment for employment services rendered, typically issued periodically at fixed intervals, like weekly or monthly.