During the Course of Working as an Internal Auditor,Samir Discovered

question 22

Multiple Choice

During the course of working as an internal auditor,Samir discovered that Kavita Corporation engaged in an illegal maneuver that lowered its reported Tax Expense on its financial accounting income statement and allowed it to receive an excessively high tax refund from the IRS.Samir potentially can recover a whistleblower reward:

• A) Only under the IRS Whistleblower Program
• B) Only under the Dodd-Frank Whistleblower Program
• C) Under both whistleblower programs
• D) Under no program whatsoever due to its breach of the duty of confidentiality

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Definitions:

Long Term Capital Gain

Profit earned from the sale of an asset held for more than a year, subjected to preferential tax rates.

Tax Bracket

A range of income subject to a particular tax rate under a progressive tax system, where higher income levels are taxed at higher rates.

Inheritance

Assets received from someone who has died, possibly subject to taxes depending on the value and the beneficiary's relationship to the deceased.

Holding Period

The length of time an investment is held by an investor, influencing tax treatment of gains or losses upon disposal.