what is the reason the irs targets the return of high risk, high income taxpayer
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Question
what is the reason the irs targets the return of high risk, high income taxpayer for audit Launch-Internet Explorer ps//hrbloc Representation Audlt Exam Question 3 of 15 Select the best answer. What is one reason the IRS targets the returns of high-risk, high-income taxpayers for audit? These individuals are more likely to have the financial means to establish pass-through entities, which may make it easier to conceal income. O A. O B. These individuals are more likely to be tax protesters. O C. Tax returns for these taxpayers are the easiest to audit. D. Most of these taxpayers are dishonest. Submit Answers Exit&Resume; Later 46% Complete Exam, Question Q 3Explanation / Answer
Answer 1
The right option is “A”.
These individuals are more likely to have the financial means to establish pass through entities, which may make it easier to conceal income.
Explanation: Taxpayers who receive substantial losses from pass through entities such as partnerships and trusts will receive close scrutiny from the IRS under its new audit priorities.
Answer 2
The right option is “C”.
The audit is held at the taxpayer’s home or business.
Explanation: A field audit is a comprehensive tax audit conducted by the Internal Revenue Service (IRS) at either the taxpayer's home, place of business or accountant's office, so they can examine your individual or business financial records to ensure you filed your tax return accurately.
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