Tax Update Blog: Permalink
« Previous · Tax Update Blog Home · Next »
Maybe surface dirt wasn't all they skimmed
November 06, 2009
When you face a hefty tax bill, the temptation to cheat on your taxes can be hard to resist -- apparently too hard for two Minnesota brothers. Joseph Edward Riley and John Thomas Riley pleaded guilty to one federal conspiracy charge yesterday in St. Paul.
They were indicted in April on charges of skimming receipts without including them in corporate income and paying personal expenses with corporate funds. It's tempting to do this because you sometimes you can get away with it for a long time. The indictment charges the brothers with doing this from 1996 to 2003 -- long enough, perhaps, to give them a false sense of security.
Remember: The standard IRS audit programs for closely-held businesses include procedures to spot payments of owner personal expenses. Taxpayers who use corporate funds to pay personal expenses stand a good chance of getting caught on audit.
Bookmark: del.icio.us • Digg • reddit
TrackBack
TrackBack URL for this entry:
http://www.rothcpa.com/mt/contages.cgi/1208
Tax Updates
Subscribe to Tax Updates
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
Search Tax Updates
Friends and Neighbors
Economics Nerds
Hard-Core Tax Nerds
Gigablogs
Insurance Folk
Goners
Legislation
Tax Update Data Feeds
