What tax law doctrine might the irs and the courts use

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Question - Mark owns a carpentry business. She "hires" her 2-year old daughter, Maggie, to "manage the office" for the carpentry business. Mark treats Maggie as an employee and pays her $15,000 for her "work" and reports the $15,000 to Maggie on a Form W-2. Marge deducts the $15,000 in "wages" from her carpentry business income on her tax return. The tax law generally allows taxpayers to deduct business expenses-such as wages paid to employees. What tax law doctrine might the IRS and the courts use to disallow Marge's $15,000 deduction for "wages"? Explain.

Reference no: EM133099083

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