Examine the major factors relative to the omission by client

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Question:

"Criminal Fraud versus Civil Fraud and Taxation of U.S. Businesses Operating Abroad" Please respond to the following:

Imagine a situation in which a client under audit by the IRS omitted $100,000 in income. From the e-Activity, examine the major factors relative to the omission by the client that would result in a criminal investigation, rather than a civil fraud proposal by the IRS.

Per the text, a U.S. parent company does not include the income of a foreign subsidiary until the income is repatriated as dividends. Defend the creation of foreign subsidiaries as a mechanism to defer income of major U.S. companies. Propose a new tax law that will benefit the U.S.

Treasury from the deferral of income from foreign subsidiaries and encourage the repatriation of the previously deferred income.

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This paper states the factor relative to the omission by the client that would result in a criminal investigation, rather than a civil fraud proposal by the IRS when audit commenced by IRS and tax law that would the U.S. Treasury from the deferral of income from foreign subsidiaries.

Reference no: EM13988622

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