Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 13

In early 2014, the IRS selected Amber's 2011 return for audit with respect to Schedule C expenses and employee business expenses claimed on the return. Amber met with an IRS agent, who disallowed many of the expenses and who claims that Amber owes $2,500 of additional taxes. Discuss Amber's alternatives.