Question

Which statement is false? a. A special agent of the IRS developed a strategy to help indict Al Capone. b. Probing missing income by pointing to specific items of income that do not appear on a tax return is an indirect method of reconstructing income. c. District attorneys may obtain tax returns. d. Tracing monies from a dummy corporation to an individual is a direct method of reconstructing income. e. None of the above is false.

Answer 1

Option , b, Probing missing income by pointing to specific items of income that do not appear on a tax return is an indirect method of reconstructing income.

Reason: Probing missing income by pointing to specific items of income is a direct method of fraud investigation.