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You Are Considering Cheating on Your Income Tax Return

Question 67

Multiple Choice

You are considering cheating on your income tax return. If you cheat you will pay $1000 in taxes; if you don't cheat you will pay $2000. If you are audited and you didn't cheat, your auditor will be kind and reduce your taxes from $2000 to $1500. If you are audited and you did cheat, you will be caught and have to pay a total of $2500, including penalties. Statistically, which is the best option for you to choose?


A) definitely cheat
B) probably cheat
C) probably don't cheat
D) definitely don't cheat

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