Which of the Following Should Increase the Likelihood That Mr

question 17

Multiple Choice

Which of the following should increase the likelihood that Mr. and Mrs. McNut's Form 1040 will be selected for audit by the IRS?

• A)Mrs.McNut is self-employed and reported a $112,000 loss on her Schedule A
• B)The McNuts claim two additional standard deductions because they are both over age 65.
• C)The McNuts reported a $12,600 nonbusiness bad debt for a loan to their grandchild as a capital loss on Schedule
• D)Both A.and C.should increase the likelihood of audit.