Are you Tempted to Cheat on Your Taxes?
Are you tempted to cheat on your taxes? In this episode of EricksonTV will be talking about an article called “Tax Hacks”. The data for this article was put out by the Internal Revenue Service.
The IRS has done some statistics and a lot of them were based on audits. In a poll with over 1000 respondents and 86% of the respondents said that cheating on taxes was unacceptable while 11% were tolerant of cheating a little bit here or there was Ok. At Erickson Wealth & Tax Management we firmly believe that even a little cheating is not ok.
Also, based on their audit performance 83% of Americans file and pay their correct amount of taxes they owe on time. But there is a missing tax gap. The IRS believes, based on a study, that an average of 458 billion dollars every year is underreported.
Some of the unreported income is people who just don’t know any different and make the wrong decisions on their taxes. A lot of people who make most of their income in cash may not have a good check and balance system and don’t properly report it. Most people cheat by deliberately underreporting income, over-deduct business-related expenses, or overstate deductions.
The IRS ranked the different industries by who cheat the most:
Then it gets real interesting.
Curtis and Lauren suggest that maybe the so called “professionals” think that they understand things a little more than they really do. They might have better access to tax resources so they might go more into the gray areas with their taxes. Just because you’re a smart person does NOT mean you know taxes! You need to study taxes to know taxes.
The bottom line is, you shouldn’t be CHEATING! The IRS has stepped up its efforts to detect the underreporting of income, particularly by small business.
So, if you're tempted to cheat on your taxes or you think you know how to do taxes, but you really don’t know how to do taxes, please contact Erickson Wealth and Tax Management.
Thank you for watching this episode of EricksonTV. We will see you next time.
Curtis Erickson | 04/07/2017