Which of the Following Guidelines Does the IRS Use to Evaluate

Multiple Choice

Which of the following guidelines does the IRS use to evaluate the tax treatment of supplemental health insurance?

A) If the income derived is taxable,then the cost is tax-free.
B) If the income derived is nontaxable,then the cost must be taxed.
C) If the income derived will be tax free,then the cost is also tax exempt.
D) If the income derived is taxable,then the cost is taxable.