Which of the following should increase the likelihood that Mr. and Mrs. McNut's Form 1040 will be selected for audit by the IRS?
A) Mrs. McNut is self-employed and reported a $112,000 loss on her Schedule
B) The McNuts claim two additional standard deductions because they are both over age 65.
C) The McNuts reported a $12,600 nonbusiness bad debt for a loan to their grandchild as a capital loss on Schedule
D) Both A. and C. should increase the likelihood of audit.
Correct Answer:
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