DQuestion 21 Glenna put money in savings accounts in 50 different banks. She kno

Question

DQuestion 21 Glenna put money in savings accounts in 50 different banks. She knows a bank is not required to report to the IRS any interest it pays her that totals less n $10. Because the banks do not report the payments to the IRS, Glenna tax evasion because she intentionally misrepresented II. Glenna's actions are tax avoidance because the IRS will never know about report the interest received as taxable income. Which of the following is (are) true? . Glenna's actions are facts on a tax return to avoid paying tax. the interest income IIl Glenna's actions are tax evasion because she took steps to conceal the income. Only statement I is correct. Only statement II is correct. Statements I and Ill are correct. Statements II and Ill are correct. Statements I, II, and IlI are correct

Explanation / Answer

Statements 1 & 3 are correct.

Reason : Tax evasion means the misrepresentation of an individual's or business' income and/or assets when reporting to the IRS, in order to reduce the amount of taxes they owe. Tax evasionactivities include: Underreporting income. Inflating deductions or expenses.

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