Glenna Put Money in Savings Accounts in 50 Different Banks

question 27

Multiple Choice

Glenna put money in savings accounts in 50 different banks. She knows a bank is not required to report to the IRS any interest it pays her that totals less than $10. Because the banks do not report the payments to the IRS, Glenna does not report the interest received as taxable income. Which of the following is (are) true?
I.Glenna's actions are tax evasion because she intentionally misrepresented facts on a tax return to avoid paying tax.
II.Glenna's actions are tax avoidance because the IRS will never know about the interest income.
III.Glenna's actions are tax evasion because she took steps to conceal the income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Statements I and III are correct.
• D)Statements II and III are correct.
• E)Statements I, II, and III are correct.

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Definitions:

US Dollar

the official currency of the United States, widely used as a standard of exchange in international markets.

Appreciate

In finance, a term used to describe an increase in the value of an asset over time. In general usage, it can also mean to recognize the worth or value of something.

Currency Devaluation

A deliberate downward adjustment of a country's currency value relative to another currency, group of currencies, or standard.

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businesses or individuals that produce goods or services for sale in foreign markets outside their own country.