All categories

3 years ago

When auditing, the IRS typically selects which type of return?

Business

1 answer:

mote1985 [20]3 years ago

8 0

Answer:

When auditing, the IRS typically selects those with high incomes.

Explanation:

The Internal Revenue Service (IRS) is a United States government entity charged with the sole duty of collecting taxes and regulation of laws with regard to income tax. The IRS was constituted by the then President Abraham Lincoln in 1862 and gets it's authority under the United States department of Treasury.

The IRS collects taxes from either individuals or companies provided they earn an income withing the United States of America. Individuals and corporations can file income taxes electronically by use of an internet enabled computer or even a smart phone.

IRS audits are usually done to confirm whether the tax returns filed are accurate. The audits can be done for a variety of reasons, but it is mainly done if the tax income filed are not coherent with the nature of the individual or company. The IRS audits are not done on every entity that files their income taxes, but only on a select portion of these entities. Those who have high incomes are usually selected for auditing.

You might be interested in

What are the<br> potential benefits of moving from a command<br> economy to a market-based system?

Nataly_w [17]

Some benefits citizens of a centrally planned economy derive from a move toward market based system are: Greater efficiency of resource use. Determines the types of goods and services to be produced the method in which they will be produced and the allocation of finished products.

3 0

3 years ago

Analyze the graph.

zvonat [6]

The answers to the question above are "increasing places to park bikes, increasing bike-share opportunities, and increasing high-occupancy vehicle lanes" which are the changes that city planners should consider within the city. The graph shows an increase of bicyclist. The graph also shows an increase in the high-occupancy car number. Thus, every plan has to be related to this condition.

7 0

3 years ago

Read 2 more answers

The information content of a dividend increase generally signals that:

sertanlavr [38]

Answer:

C) management believes earnings growth will be strong going forward.

Explanation:

Dividend is the percentage of income that the corporation aims to allocate to the company's shareholders. When there is an rise in dividend it means that the company will have good results for the future. The rise in the dividend is a prediction of future profitability for the firm.

Plus it would be distributed to the preferred shareholders and the equity shareholders and the preference is given first to preferred shareholders

6 0

3 years ago

Russell Container Corporation has a $1,000 par value bond outstanding with 30 years to maturity. The bond carries an annual inte

12345 [234]

Answer:

Yield on new issue = 11.99%

After tax cost of debt = 8.99%

Explanation:

Given the following :

Future value (FV) = 1000

Period (n) = 30 years

Payment per period (PMT) = $105

Present value (PV) = $880

Tax rate = 25% = 0.25

a. Compute the yield to maturity on the old issue and use this as the yield for the new issue.

Coupon rate = (PMT ÷ par value)

Coupon rate = 105÷ 1000

Coupon rate = 10.50%

Using the financial calculator, bond yield ;

(FV, rate, period, No of payment per year, PV)

Yield on new issue = 11.99%

RATE(n,PMT, PV, FV, 0)

B.) after tax cost of debt, that is, after making necessary tax adjustments

Tax rate = 0.25

After tax cost of debt = yield × (1 - tax rate)

After tax cost = 0.1199 × (1 - 0.25)

After tax cost of debt = 0.1199 × 0.75

After tax cost of debt = 0.089925

After tax cost of debt = 8.99%

3 0

4 years ago

Sandhill Co. entered into these transactions during May 2022, its first month of operations.

mixer [17]

Answer and Explanation:

The transactions 3 6 and 8 represents that the expenses are incurred which results in increased and expenses and the transaction 4 and 5 shows that there is an increased in revenue

The journal entry is shown below:

For transaction 3

Rent expense

To Cash

(Being the rent expense is paid for cash is recorded)

As the expense has debit balance so it would be increased

For transaction 6

Electricity expenses Dr

To Cash

(Being the energy usage is paid for cash is recorded)

As the expense has debit balance so it would be increased

For transaction 8

Advertising expense Dr

To Account payable

(Being the advertising expense is recorded)

As the expense has debit balance so it would be increased

For transaction 4

Account receivable Dr

To Service revenue

(Being the service is provided)

As the revenue has credit balance so it would be increased

For transaction 5

Cash Dr

To Service revenue

(Being the service provided is recorded)

As the revenue has credit balance so it would be increased

The attachment is provided for better understanding

The other transactions represent the assets, liabilities and stockholder equity

8 0

3 years ago