Is it easier for the IRS to determine that an individual omitted an income item from a return or overstated deductions?
Answer to relevant QuestionsA city government increased its local sales tax from 1 percent to 2 percent of the dollar value of consumer goods purchased in the city. However, the city’s sales tax revenues increased by only 30 percent after the ...Mr. and Mrs. K pay $18,000 annual tuition to a private school for their three children. They also pay $2,300 property tax on their personal residence to support the local public school system. Should Mr. and Mrs. K be exempt ...Mr. Stanhope has an MBA degree from Stanford University and has been in business for himself for 18 years. The revenue agent who audited his Form 1040 discovered a glaring error resulting in a $16,200 understatement of tax. ...16. The IRS assessed a $32,800 income tax deﬁciency plus $4,015 interest against Mr. and Mrs. Reczyk because of an alleged understatement of investment income. They refused to pay and took their case to the U.S. Tax Court. ...Mrs. Fugate, who is divorced, failed to include $28,000 alimony on her 2014 Form 1040. The only income she reported was her $78,000 salary. She ﬁled her return on January 19, 2015. a. What is the last date on which the IRS ...
Post your question