1. Three key characteristics of a tax are that they a) are a required payment, b) to...
Question:
1. Three key characteristics of a tax are that they a) are a required payment, b) to a governmental agency and c) that directly benefit the taxpayer.
True/ False
2. Many business decisions are impacted by taxes, but personal decisions typically are not.
True/ False
3. The IRS uses various methods to identify tax returns for audit. Three computer programs used to identify returns for audit are the DIF (Discriminant Function) system, the document perfection system, and the industry issue campaign program.
True/ False
4. Jon is an undergraduate accounting student at OSU. He learned about barter clubs in his tax class. Jon formed one with his roommates and traded $5,000 of services for a 1999 Toyota Corolla. Because barter clubs are a good tax planning strategy and are an effective means of avoiding realization for tax purposes, Jon does not have to include the $5,000 in gross income.
True/ False
Expert Answer:
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