Which of the following taxpayers used tax evasion tactics when filing their 2016 tax return?
I.Fern,a cash basis accountant intentionally billed clients for services on December 31,2016,to avoid receiving cash payments from clients until 2017.
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 2016.

Question

Which of the following taxpayers used tax evasion tactics when filing their 2016 tax return?
I.Fern,a cash basis accountant intentionally billed clients for services on December 31,2016,to avoid receiving cash payments from clients until 2017.
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 2016.
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Quizplus · Accepted Answer

Bo's deduction of personal expenses (the cost of raising steers for family use) is a form of tax evasion, as it involves claiming personal expenses as business expenses.

Which of the Following Taxpayers Used Tax Evasion Tactics When