You overhear Matheus say, "I am so glad to be divorced from my cheating wife Larissa. She keeps two sets of books in her design business, and I wish the IRS would find out about it." Is Matheus a candidate for the informant reward program that is operated by the IRS? Explain how the program works and how a reward might be paid to Matheus.
Answer to relevant QuestionsDefine the following terms in the context of tax law enforcement. a. Civil penalty. b. Criminal penalty. c. Ad valorem penalty. d. Deductible penalty. Why can the unified transfer tax be categorized as an excise tax? In this regard, how does it differ from an income tax? With regard to "life insurance," comment on the following. a. What the term includes (i.e., types of policies). b. The meaning of "incidents of ownership." c. When a gift occurs upon maturity of the policy. d. The tax ...Carter died in 2015 with a gross estate of $6 million. Before he was married in 2002, Carter had made taxable gifts of $400,000 upon which he paid no gift tax. All of Carter's property passes to his surviving spouse. ...In each of the following independent situations, indicate whether the alternate valuation date can be elected. Explain why or why not. All deaths occur in 2015.
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