QUESTION 2

• Which of the following is an argument that may be used as a sufficient defense against willful intent to file a tax return?

		Substantially understating sales or overstating expenses.
		Fear that filing will cause the government to notice that the taxpayer had failed to file in previous years.
		Pressures of business and personal matters.
		The belief that the return could not be filed unless a payment accompanied them, coupled with the inability to pay.
		Not reporting political bribes as income.

2 points

QUESTION 3

• Per the article Client Tax Fraud and the CPA which of the following is not considered an indicator of tax fraud that could trigger a criminal investigation?

		Omissions of entire sources of income.
		Keeping two sets of books or no books.
		Lack of support for a cash donation to a church.
		Assets placed in others names.
		Amounts on the return not in agreement with amounts in books.
		Substantial amounts of personal expenditures claimed as business expenses.