c$.$ Dale fails to report $$120$ of dividends from a stock investment. His taxable income is $$40,000$ and he has no other unusually large itemized deductions or business expenses. A Form $1099$ is reported to the IRS.

Dale is $$ to be audited It is likely that the Form $1099$ checked against the reported amount and the IRS center $$ Dale a bill for the corrected amount of tax.