Betty Hires Sam to Prepare Her Federal Income Tax Return

question 145

Multiple Choice

Betty hires Sam to prepare her federal income tax return.In preparing the return,Sam erroneously decided to exclude consulting fees because he estimated that Betty's expenses should have exceeded the income she received.If the IRS detects Betty's underpayment of tax,what is the likely result?
I.Betty is liable for payment of the tax due plus interest and a negligence penalty.
II.Sam is liable for payment of Betty's negligence penalty.Betty is liable for the payment of the tax due plus interest.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct
• D)Neither statement is correct

Grasp the role of Geographic Information Systems in aiding location decisions.

Apply crossover analysis in selecting among location alternatives.

Assess the impact of exchange rates on location decisions.

Identify ethical considerations and social responsibility in location strategy.

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Definitions:

Actus Reus

The physical act of committing a crime, as opposed to the mental intent to commit the act (mens rea).

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Crime committed using a computer.

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The process of buying and selling goods or services via the internet through bidding, where the highest bid wins the item.

Nolo Contendere Plea

A legal plea through which a defendant in a criminal trial neither admits nor disputes a charge, allowing the court to proceed with sentencing without an admission of guilt.