IRS Computers Use Document Matching Programs for Both Individuals and Business

question 99

True/False

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

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Definitions:

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, granting holders a claim on the company's assets and earnings.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.

Derivative Securities

Financial instruments whose value is derived from the value of an underlying asset, such as futures, options, and swaps.

Consumer Durables

Goods that are not consumed with their use and can be used over a longer period, such as appliances, vehicles, and electronics.