Which of the following individuals is most likely to be audited?
A)Lola has AGI of $35,000 from wages and uses the standard deduction.
B)Marvella has a $145,000 net loss from her unincorporated business (a horse farm).She also received $950,000 salary as a CEO of a corporation.
C)Melvin is retired and receives Social Security benefits.
D)Jerry is a school teacher with two children earning $55,000 a year.He also receives $200 in interest income on a bank account.

Question

Quizplus · Accepted Answer

Marvella's large net loss from her unincorporated business and high salary as a CEO may raise red flags with the IRS and lead to an audit. The other individuals listed do not have any major red flags that would make them more likely to be audited.

Which of the Following Individuals Is Most Likely to Be