Which of the Following Is More Likely to Receive IRS

question 42

Multiple Choice

Which of the following is more likely to receive IRS scrutiny under the assignment of income doctrine?

• A) A corporation paying its shareholders a $20,000 dividend
• B) A parent employing her child in the family business
• C) A taxpayer gifting stock to his children
• D) A cash-basis business delaying billing its customers until after year end
• E) None of these

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Definitions:

Federal Reserve

is the central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services to governmental institutions.

Response

Reaction or answer to a question, situation, stimulation, or environmental change, often analyzed in contexts such as surveys, experiments, or market changes.

Federal Reserve

America's leading banking institution in charge of regulating monetary policy.

Control

The power to influence or direct people's behavior or the course of events.