Getting Cocky: Go ahead, go crazy with your Tax Filing.
That's what everyone says.
Claim your new pool as a "Business Expense" and Claim Dependants you don't have.
Think about it.
Does it really sound like a good idea? Do you really think you can get away with that? A Quick Word: People are always asking me, "What deductions can I safely take?" In the end, it's your decision.
But ask yourself the following questions: Do you like taking risks that could land you into prison? Do you like taking risks that would make you pay hundreds or even thousands of dollars in fines? If you wouldn't rob a bank, don't rob the IRS.
Those consequences I listed are the realities of getting too bold with your Tax Filing.
Review: The IRS trains their staff to keep a close eye out for common signs of Fraud.
They include: ridiculous or outstanding deductions, claiming personal expenses as business expenses, and not reporting all of your income.
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.
Defend Yourself: Caught by the IRS? There's still hope for you.
-Honest Mistake: If there's an error on your tax return, try convincing the IRS that it was an honest mistake.
In order to be accused of Fraud, the IRS has to prove you intentionally committed the crime.
But as a word of warning, you have to prove that the error was a mistake.
-Nontaxable Source: The money is not always taxable income.
You may have received money as a gift or from an inheritance.
You can use this as your defense if the IRS checks your bank deposits and realizes the income you reported and the amount of deposits you made don't add up.
Again, be prepared to prove you received the inheritance or the gift.
You'll need concrete proof, don't try to use this as an excuse.
Don't Worry: You can still make reasonable and normal deductions without worrying about prosecution.
The IRS just keeps an eye out for outstanding and unusual deductions, especially withSmall Business in this arena.
Cover you bases, and make sure you don't stretch the truth too far.
Now You Have The Smoking Gun...
Use it!
That's what everyone says.
Claim your new pool as a "Business Expense" and Claim Dependants you don't have.
Think about it.
Does it really sound like a good idea? Do you really think you can get away with that? A Quick Word: People are always asking me, "What deductions can I safely take?" In the end, it's your decision.
But ask yourself the following questions: Do you like taking risks that could land you into prison? Do you like taking risks that would make you pay hundreds or even thousands of dollars in fines? If you wouldn't rob a bank, don't rob the IRS.
Those consequences I listed are the realities of getting too bold with your Tax Filing.
Review: The IRS trains their staff to keep a close eye out for common signs of Fraud.
They include: ridiculous or outstanding deductions, claiming personal expenses as business expenses, and not reporting all of your income.
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.
Defend Yourself: Caught by the IRS? There's still hope for you.
-Honest Mistake: If there's an error on your tax return, try convincing the IRS that it was an honest mistake.
In order to be accused of Fraud, the IRS has to prove you intentionally committed the crime.
But as a word of warning, you have to prove that the error was a mistake.
-Nontaxable Source: The money is not always taxable income.
You may have received money as a gift or from an inheritance.
You can use this as your defense if the IRS checks your bank deposits and realizes the income you reported and the amount of deposits you made don't add up.
Again, be prepared to prove you received the inheritance or the gift.
You'll need concrete proof, don't try to use this as an excuse.
Don't Worry: You can still make reasonable and normal deductions without worrying about prosecution.
The IRS just keeps an eye out for outstanding and unusual deductions, especially withSmall Business in this arena.
Cover you bases, and make sure you don't stretch the truth too far.
Now You Have The Smoking Gun...
Use it!