Most people try to be model taxpayers.
Nobody wants those dreaded tax audits, threatening notices, and the bad
reputation you earn from them. On the other hand, there are also some who try
to cheat their taxes or unknowingly commit errors. Unfortunately for public figures
like celebrities, those cheats and errors are usually exposed to the public.
Bad outcomes like being billed an obscene amount of money, getting properties
seized, and doing prison time also circulate in the media.
The IRS will uncover tax deduction errors.
Some tax cheaters would
claim personal
expenses as business expenses. An actor previously tried to write off his
private jet once, while a couple claimed that their million-dollar dance floor
at home were basic and necessary to business.
The IRS will uncover what you omit.
Others will forget to
include other sources of income, including prize money from gambling and other
games or contests. One reality show winner did so and served jail time for it.
Knowing the
consequences, you would realize that tax cheats just aren’t worth the risk. The
IRS has been known to be meticulous and tough when it comes to delinquencies. Of
course, other times, it could have been an honest mistake on your part or a
repercussion caused by others, but you will still be held liable for the debt
and the penalties. Be sure to explore your options to resolve the issue with a tax
lawyer when that happens.
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