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I’m not going to name names, but over the past 25 years of practicing accounting, I’ve run across a fair number of business owners who are tax cheats. These are the people that are playing what I call “audit roulette.” They are knowingly underpaying the taxes they owe and hoping they don’t get selected for an audit. Considering that the IRS only audits less than 3% of corporate tax returns (it’s .1% for S-Corporations) — and most of them are larger companies with bigger pocketbooks — it’s not a bad gamble.
Are you cheating on your business taxes — or thinking about it? I don’t recommend it. Here are the five most popular ways I’ve seen people do this and — most importantly — how they get caught.
Related: Make Tax Season As Painless as Possible by Taking These 6 Steps
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