Study Question Set #3 for Perfectly Legal

1. What was in Rossotti's plan called "Modernizing America's Tax Agency" that revolutionized the way the IRS did business?

2. What was "audit lite" and what was its effect on the effective tax rate of America's 10,000 largest companies?

3. What are the four reasons why people who use the loopholes in partnerships laws take the risk of getting caught for tax evasion?

4. What did Jerry Curnutt and Rossotti feel was the overall societal effect of underreported partnership income?

5. How did Peter Kellogg use tax-exempt insurance companies to protect profits his other business ventures made?

6. What is the 861 position and how have individuals used it to evade taxes?

7. According to the General Accounting Office, how many companies in the US fail to withhold taxes?

8. Name 2 of 3 reasons (that Johnston provides) for the growing popularity of mass-marketed tax evasion schemes.

9. How much have recent estimates put the total dollar amount of tax evasion that occurs each year?

10. What was so surprising about the number of offshore accounts disclosed by Americans and the number of MasterCards and Visas attached to offshore accounts?

11. Extra Credit. What is the "foreign tax credit" and how did Compaq use it to evade taxes? [Complicated answer]