Income Tax Law and Practices Quiz

Tax incentives for investing in speculative ventures

Tax exemptions for high-income earners

Tax deductions for charitable contributions (correct)

Tax credits for purchasing luxury items

To collect income tax as it is earned (correct)

To fund social security benefits

To reduce the employer's administrative burden

To provide interest-free loans to employees

Concealing income from the tax authorities

Maximizing contributions to retirement accounts (correct)

Overstating business expenses

Delaying filing tax returns indefinitely