Updated July 22, 2015
Commingling Funds Chicago Illinois
 

Tax fraud, commingling funds, and potential audit problems

If you have more than one taxpaying entity, the entities must be kept completely separate.

A corporation, for example, is a living, breathing “entity” under the law. It has it’s own social security number, more commonly known as your Federal Employer Identification Number. It does it’s own business. If the Corporation has a problem paying it’s bills, then the owner can not be held responsible for those bills, unless they can pierce the corporate veil. But it’s income and expenses must be kept separate from other entities.

You cannot deduct one company’s expenses, on another one’s income tax return. You cannot deduct your personal expenses off of the corporation. If you commingle funds, you are committing tax fraud. In doing so, you will pay additional tax, interest, penalties, and in extreme cases face jail time.

 
If you are having problems with Commingling Funds Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
 
Chris@AccountingSolutionsltd.com
 
Additional Accounting Articles and information on my firm can be found at
 
www.AccountingSolutionsLtd.com
 
Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.