The reason the IRS is most concerned about lease contracts is:
A) firms that lease generally pay no taxes.
B) that leasing usually leads to bankruptcy.
C) that leases can be set up solely to avoid taxes.
D) because leasing leads to off-balance-sheet-financing.
E) All of

Question

Quizplus · Accepted Answer

Leases can be structured in a way to minimize tax liabilities, which is why the IRS scrutinizes them to ensure they are not being used solely for tax avoidance purposes.

The Reason the IRS Is Most Concerned About Lease Contracts