A Specially Designated Area in or near a U

question 26

Multiple Choice

A specially designated area in or near a U.S. customs port of entry that allows resident companies to import materials and components from foreign counties; assemble, process, manufacture, or package them, and then ship the finished product back out while either reducing or eliminating tariffs and duties is a:

• A) empowerment zone.
• B) foreign trade zone
• C) business incubator.
• D) trading area.

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Definitions:

Tips

Gratuity given voluntarily by customers in exchange for a service, often subject to specific reporting and taxation rules.

Preparer Tax Identification Number

A unique identification number that all paid tax return preparers must use on U.S. federal tax returns or claims for tax refunds submitted to the IRS.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate of tax applied to your highest level of income.

Federal Tax Legislation

Laws passed by the United States Congress that relate to taxes imposed by the federal government.