Which of the following taxpayers used tax evasion tactics when filing their 2017 tax return?
I.Fern,a cash basis accountant intentionally billed clients for services on December 31,2017,to avoid receiving cash payments from clients until 2018.
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 2017.
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.
Correct Answer:
Verified
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