Which of the following statements is correct in connection with the investigation of a business? a. Expenses may be deducted immediately by a taxpayer engaged in a similar trade or business regardless of whether the business being investigated is acquired. b. That business must be related to the taxpayer's present business for any expense ever to be deductible. c. Regardless of whether the taxpayer is already engaged in the trade or business, the expenses must be capitalized and amortized. d. If the taxpayer is not already engaged in the trade or business, the expenses incurred are deductible if the project is abandoned. e. None of these choices are correct.

The correct answer is A) Expenses may be deducted immediately by a taxpayer engaged in a similar trade or business regardless of whether the business being investigated is acquired.

The statement that is correct in connection with the investigation of a business is "Expenses may be deducted immediately by a taxpayer engaged in a similar trade or business regardless of whether the business being investigated is acquired."

We are talking about a delicate topic, the investigation of a business that has committed possible wrongdoing in the accounting procedures. Specifically, a financial investigation is aimed to find any kind of financial or accounting wrongdoing such as embezzlement or money laundry, which is considered to be a federal crime. The Internal Revenue Service (IRS) can investigate companies and ask them for any background documents and information that supports their operations.

answer; schedule c;