Which of the Following Statements About Tax Fraud Is True

question 7

Multiple Choice

Which of the following statements about tax fraud is true?

• A) A revenue agent can assess a civil fraud penalty in the course of an audit.
• B) A revenue agent can charge a taxpayer with criminal fraud in the course of an audit.
• C) A taxpayer can be imprisoned for committing either civil fraud or criminal fraud.
• D) The IRS's burden of proof in establishing fraud is identical for civil and criminal fraud.

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Definitions:

Returns Favors

Describes the act of reciprocating or doing something for someone because they have done something for you, embodying the principle of reciprocity.

Prisoner's Dilemma

A game theory scenario where two individuals acting in their own self-interest do not produce the optimal outcome for either party.

Confess

To admit or acknowledge something that one has done, especially something wrong or socially unacceptable.

Aid

Assistance provided to individuals, groups, or countries in the form of goods, services, or financial support, often in times of crisis or need.