Because red flags are likely to be raised at the IRS by the reporting of gambling income, business owners who report their income as business revenue is less likely to undergo an audit.Quote:
A) Because red flags are likely to be raised at the IRS by the reporting of gambling income, business
owners who report their income as business revenue
is less likely to undergo an audit.
Meaning inconsistent. S-V verb tense error.
Quote:
B) Because the reporting of gambling income is likely to raise red flags at the IRS, business owners can reduce their chances of undergoing an audit by reporting that income as business revenue.
"That" here looks ambiguous in initial go and I too crossed it out in the first go, but after going through all the answer choices, "meaning" of this sentence makes much more sense and also the referent of "
that" comes out of the shadow as "
gambling income". Author wants
Business dealers to not disclose their incomes as
gambling incomes rather disclose "
that"
income as
business income or their will be "
Audit". So, this is the correct answer choice in that view.
Correct.Quote:
C) Business owners can reduce their chances of undergoing an audit by reporting the income as business revenue, because the reporting of gambling income is likely to raise red flags at the IRS.
Though grammatically correct, the meaning of this sentence is
slightly off. This sentence makes it seem that
business and gambling incomes as
two separate entities whereas both are actually the same. Incorrect.
Quote:
D)
Their chances of undergoing 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.
What does "their" refer to here exactly? This sentence is absolute
bs. Incorrect.
Quote:
E) The reporting of that income as business revenue can reduce the chances of business owners of undergoing an audit, because of the red flags not having been raised at the IRS by the reporting of gambling income.
"that" income? What that income? Non-sensible.