In Selecting Returns for Examination, the Primary Goal of the IRS

question 30

Multiple Choice

In selecting returns for examination, the primary goal of the IRS is to review only those returns that:

• A) belong to the taxpayers who were found guilty before.
• B) will generate additional revenues for the Treasury
• C) have been filed for the first time.
• D) contain mathematical/clerical errors.

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Definitions:

North American Potlatch

A ceremonial feast or gathering among indigenous peoples of the Pacific Northwest Coast of Canada and the United States, characterized by the distribution of gifts to affirm or establish status and prestige.

Generalized Reciprocity

A mode of exchange in which the value of the gift is not calculated, nor is the time of repayment specified.

Balanced Reciprocity

A mode of exchange in which the giving and the receiving are specific as to the value of the goods and the time of their delivery.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with little government intervention.