Question

Since red flags are likely to be raised at the IRS by the reporting of gambling income, business owners who declare their income as business revenue is less likely to receive an audit.

• A. Since red flags are likely to be raised at the IRS by the reporting of gambling income, business owners who declare their income as business revenue is less likely to receive an audit.
• B. Because the reporting of gambling income is likely to raise red flags at the IRS, business owners who declare their income as business revenue can reduce their chances of receiving an audit by declaring that income as business revenue.
• C. Business owners can reduce their chances of receiving an audit by declaring the income as business revenue.
• D. Their chances of receiving an audit are reduced by business owners who report that income as business revenue, because the reporting of gambling income is likely to raise red flags at the IRS.
• E. The reporting of that income as business revenue can reduce the chances of business owners receiving an audit, because of the red flags not having been raised at the IRS by the reporting of gambling income.

Hint:

Focus on the clarity and logical flow of the sentence, and ensure subject-verb agreement and proper grammatical structure.

Answer 1

The Correct Option is B

Step 1: Focus on clarity and meaning.
The sentence describes how reporting gambling income as business revenue can affect the likelihood of an audit by the IRS. Option (B) is the most detailed and precise, clarifying both the process and the result.
Step 2: Review the options.
- (A) This option contains a subject-verb agreement error. The phrase “business owners... is less likely” should be “are less likely” to agree with the plural subject "business owners."
- (B) This option provides the clearest, most complete explanation of the relationship between reporting gambling income and the audit process, with proper clarity and structure.
- (C) This option oversimplifies the relationship, leaving out the connection to red flags raised by the IRS and the role of reporting gambling income.
- (D) This option is grammatically awkward and unnecessarily convoluted.
- (E) This option is unclear, especially with the phrase “because of the red flags not having been raised.” The structure is awkward and does not express the idea as clearly as option (B).
Conclusion:
Option (B) is the best answer because it clearly and logically explains the relationship between declaring gambling income as business revenue and reducing the likelihood of an audit.