Which of the Following Is More Likely to Receive IRS

question 11

Multiple Choice

Which of the following is more likely to receive IRS scrutiny under the assignment of income doctrine?

• A)A corporation paying its shareholders a $20,000 dividend.
• B)A parent employing her child in the family business.
• C)A taxpayer gifting stock to his children.
• D)A cash-basis business delaying billing its customers until after year-end.
• E)None of the choices are correct.

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Definitions:

Thin Client

A type of computer that does not have all the ports and components (such as a hard drive) of a traditional PC. It includes basic applications, meets minimum requirements for the selected OS, and has network connectivity.

Thick Client

A computer that can run its applications and perform most tasks independently without needing constant communication with a server.

Minimal Applications

Software applications designed with the minimum necessary features to perform their intended functions, often emphasizing simplicity and efficiency.

POTS Line

Plain Old Telephone Service line refers to the standard telephone service provided over traditional copper wires carrying analog voice data.