Which of the Following Guidelines Does the IRS Use to Evaluate

question 52

Multiple Choice

Which of the following guidelines does the IRS use to evaluate the tax treatment of supplemental health insurance?

• A) If the income derived is taxable,then the cost is tax-free.
• B) If the income derived is nontaxable,then the cost must be taxed.
• C) If the income derived will be tax free,then the cost is also tax exempt.
• D) If the income derived is taxable,then the cost is taxable.

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Definitions:

Proximal

Situated near the center of the body or the point of attachment.

Proxim

Refers to being closer to the point of reference or origin, typically used in anatomical and spatial contexts.

Cranial Cavity

The space within the skull that houses the brain, part of the dorsal body cavity.

Cranial

Pertaining to the skull or cranium, which houses and protects the brain.