State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations.
The state tax plan outlined above assumes that
A) federal tax officials will not attempt to collect back taxes in the same manner
B) stiff fines are not the only way to collect past due corporate taxes
C) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
D) past due taxes cannot be collected without a reduction in penalties
E) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals.
State Tax
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Plan: To reduce penalties for corporations.greenwich wrote:State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations.
The state tax plan outlined above assumes that
A) federal tax officials will not attempt to collect back taxes in the same manner
B) stiff fines are not the only way to collect past due corporate taxes
C) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
D) past due taxes cannot be collected without a reduction in penalties
E) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals.
Goal: To collect back taxes from these corporations.
In a planning CR, the assumption is that nothing will prevent the plan, if implemented, from achieving its goal.
Apply the NEGATION TEST.
The negation of the correct answer = a PROBLEM that will prevent the plan from achieving its goal.
Answer choice B, negated:
STIFF FINES ARE THE ONLY WAY to collect past due corporate taxes.
If stiff fines are THE ONLY WAY to collect past due corporate taxes, then the plan to REDUCE these fines clearly WILL NOT WORK.
The correct answer is B.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
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Student Review #3