Hunter owns his own business and has done several questionable things related to filing tax

returns. Which of the following is incorrectly listed as an offense for which he may be subject

to criminal prosecution?

a) Tax evasion

b) Forgetting to report $25 in interest income

c) Willful failure to file a return

d) Preparing and filing a fraudulent return

Hunter owns his own business and has done several questionable things related to filing tax

returns. He is under investigation by the IRS. Which of the following is not definitive evidence

of negligence or disregard of tax rules and regulations?

a) Failure to make a reasonable attempt to comply with the tax law

b) Failure to exercise ordinary and reasonable care in preparing a return

c) Failure to keep adequate books and records

d) Failure to report $100 interest because he failed to receive a statement

Hunter owns his own business and has done several questionable things related to filing tax

returns. He is under investigation by the IRS. Which of the following statements below

describes what Hunter may do to avoid the penalty for disregard of rules and regulations?

a) Hunter can avoid the penalty if he calls the IRS.

b) Hunter can avoid the penalty if he sends a letter to the IRS.

c) Hunter can avoid the penalty if he contacts his CPA.

d) Hunter can avoid the penalty if he adequately disclosed on his return a position that has at

least a reasonable basis.