A strategy to shift income from one taxpayer to a different taxpayer reflects the entity variable, while a strategy to shift income from one year to a different year reflects the time period variable.

Question

Quizplus · Accepted Answer

This statement is true as the entity variable refers to the taxpayer or entity involved, while the time period variable refers to the specific year or period in which income is earned. A strategy to shift income from one taxpayer to another would involve manipulating the entity variable, while a strategy to shift income from one year to another would involve manipulating the time period variable.

A Strategy to Shift Income from One Taxpayer to a Different