Specific Factors That Are Used in Selecting Tax Returns for Audit

question 17

Essay

Specific factors that are used in selecting tax returns for audit and the weights for such factors are not released to the public. Summarize the public information about tax audit selection; how might a tax return's chances of audit increase above national norms?

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Definitions:

Effective Indorsement

A signature on a negotiable instrument, such as a check or promissory note, that transfers the rights in that instrument to another party.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check or bond, and has the right to collect the value of the instrument.

Blank Indorsements

involves an endorsement on a financial instrument, like a check, that specifies no endorsee, making it payable to the bearer.

Indorser

An individual or entity that signs on the back of a negotiable instrument, thereby transferring ownership or guaranteeing payment to another party.