Ed Travels from One Construction Site to Another Pursuing His

question 116

Essay

Ed travels from one construction site to another pursuing his work as an insulator. Because of family problems and being on the road so much, Ed overlooked filing his 2010 tax return. Ed hasn't filed any returns since 2010 because he is afraid the IRS will find the missed returns and put him in jail and he won't be able to support his family. Ed carefully makes sure that his employers withhold more income tax than is necessary. Ed knows for certain that if he filed the late returns he would get a tax refund for each of the years. Has Ed evaded the income tax? Explain.

---

Definitions:

Cash Discount

A reduction in the price of goods or services offered by the seller to encourage prompt payment by the buyer.

Discount Date

The date on which a payment is to be made earlier than its originally scheduled due date at a reduced rate.

Due Date

the specified date by which a payment, task, or project is to be completed or submitted.

Delivery Charge

A fee imposed for the service of delivering goods or services to a specified location, typically distinct from shipping charges by the directness of the service.