Serena operates a gift shop. To reduce costs of credit card transactions, she offers customers a discount

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Serena operates a gift shop. To reduce costs of credit card transactions, she offers customers a discount if they pay in cash. For the holiday rush, she hires some short-term workers, but pays them cash and does not add them to the payroll.

a. What are some of the tax problems Serena might have?

b. Assess Serena’s chances of audit by the IRS.

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South-Western Federal Taxation 2018 Comprehensive

ISBN: 9781337386005

41st Edition

Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young

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Question Posted: May 29, 2018 03:48 AM

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Serena operates a gift shop. To reduce costs of credit card transactions, she offers customers a discount

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a Serena may have recordkeeping issues related to ...View the full answer

South-Western Federal Taxation 2018 Comprehensive

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