Which of the Following Taxpayers Used Tax Evasion Tactics When

Which of the following taxpayers used tax evasion tactics when filing their 2014 tax return? I. Fern, a cash basis accountant intentionally billed clients for services on December 31, 2014, to avoid receiving cash payments from clients until 2015. II. Samual made a mathematical mistake on a schedule in his tax return that resulted in a $2,000 underpayment of tax. The IRS does not detect the mistake.. III. Beverly accidentally underreported $800 of income she earned providing childcare in her home. IV. Bo, a cattle rancher, deducted the cost of raising 7 steers that were used by his family and relatives for food during 2014.

A) Statements I and III are correct.
B) Only statement II is correct.
C) Statements II and III are correct.
D) Statemenst III and IV are correct.
E) Only statement IV is correct.