A Pleasant Reminder, people tend to get a little more bold and desperate late in the Tax Filing season. But let me remind you, Fraudulent Tax Filing is never O.K. The IRS will find you, and when they do, you can face a jail sentence.
Review: The IRS trains their staff to keep a close eye out for common signs of Fraud.
- ridiculous or outstanding deductions
- claiming personal expenses as business expenses
- not reporting all of your income
- even numbers ($500.00, $5,000.00) as these rarely occur in real life
Watch out because a lot of people, even professionals, will tell you any of the above are alright to do, but don't fall for that! You could end up with criminal charges against you.
Don't Worry you can still make reasonable and normal deductions without worrying about prosecution. But the IRS just keeps an eye out for outstanding and unusual deductions, especially with Small Business in this arena. Cover your bases, and make sure you don't stretch the truth too far.