Which of the following taxpayers used tax evasion tactics when filing their 2018 tax return?
I.Fern, a cash basis accountant intentionally billed clients for services on December 31, 2018, to avoid receiving cash payments from clients until 2019.
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 2018.

Question

Which of the following taxpayers used tax evasion tactics when filing their 2018 tax return?
I.Fern, a cash basis accountant intentionally billed clients for services on December 31, 2018, to avoid receiving cash payments from clients until 2019.
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 2018.
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Quizplus · Accepted Answer

Statement IV involves Bo intentionally claiming deductions for personal expenses, which is a form of tax evasion. Statements I, II, and III do not describe intentional evasion; I is tax planning, II is an error without intent, and III is an accidental underreporting.

Which of the Following Taxpayers Used Tax Evasion Tactics When