Question

Question 7 of 15 For Tan Yew 2019, amewe indexed using the Chained Consumer Price index for All Urban Consumers chained CPT). What it will this have on 2019 tax reburns? Taxpaye wil end up paying more tax on 2019 taxes Taxpayers will not pay any tax on 2019 x munca Using the chained Chapayers will pay less tax on 2019 tax mums Using the cared CPI will not have a cotate impact on 2018 om L Mark Borow up Question of 15. If a far preparer fails to comply with the due diligence, the IRS can assess a penalty against the bas prepare and the employer for each are. What is the penalty amount for ca

Answer 1

The correct choice is-Taxpayer will end up paying more tax on 2019 tax returns.

Switching over chained CPI would cause some low-income urban people to face a tax hike starting in 2019. This would happen because the Earned Income Tax Credit (EITC) becomes slightly less generous in 2019 as the income limits and earnings thresholds used to calculate the credit would be adjusted at the slower inflation rate.

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