Learn exactly how this happens ...and what you are able to do about it.

QUESTION

Question 14 of 19

In this quiz we will not cover the details of how the language of these tax forms accomplishes the goal of converting private sector earnings into federally privileged earnings, at least in the eyes of the courts and the IRS.

But we will include one question that covers the basic mechanisms.

The 1099, W-2, K-1, and similar information forms get their power to become evidence that the earnings declared are income and federally-connected from:

A)The clever re-definition in the tax code of ordinary words and phrases such as "wages ", "employee", and "trade or business".

B)The lack of any countervailing evidence to the testimony contained on the forms.

C)The presumption of the courts that such testimony is correct.

D)All of these reasons.

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