Accounting Articles > Ethics:

Discipline versus tax evasion and tax evasion delusions

One of the basic laws in the world of auditing is that companies that are disciplined make more money on a consistent basis than companies that cheat.

Any experienced auditor will tell you that cheaters never win in the long run. You are under the greatest delusion of all if you think that evading income tax, is in any way, an acceptable way to operate a business. You might get away with it one year, you might even get away with it for a few. But sooner or later you’re going to get caught. The money you will spend on the defense of something that cannot be won, the time that you will spend loosing, the anguish involved, as well as the additional tax, penalty, and interest is simply not worth it. Let’s also remember that tax evasion can also be punished with jail time, although unless you are public enemy number one, this is the exception rather than the rule.

As of the date that this was written, The Internal Revenue Service has stepped up its enforcement efforts through auditing. I have been told by IRS auditors that an additional 1000 agents were hired in 2006, and another 1000 were hired in 2007. Everyone I have spoken to that has a taxation firm like mine is now handling several more audits then they would consider normal. The national numbers that I have seen place the number of federal audits back at the levels that we had during The Reagan Administration.

A disciplined business owner will always have better profits and less problems than an undisciplined one. Don’t fall into this trap. Tax evasion is not a joke. Spend your time, your money, and your life building a better business, rather than trying to stay out of jail.

If you plan on cheating on your tax returns, please call someone else.

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Accounting Articles > Ethics:

Discipline versus tax evasion and tax evasion delusions

One of the basic laws in the world of auditing is that companies that are disciplined make more money on a consistent basis than companies that cheat.

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