You can’t have your cake and eat it too.

Posted on January 3, 2011

0


The recent oil spill in the gulf was a prime example of the problems that come with not reporting cash. Many of the businesses along the gulf were complaining because they could not get any reimbursement for their losses during the oil spill. It seems they never showed any profits on their tax returns but now they are saying they made thousands of dollars every year and want reimbursement for their losses. I think the moral to this story is obvious. Just because you receive cash does not mean it is not taxable. The tax code clearly defines income which includes cash and that is why we are seeing all these new reporting requirements, audit guides and stiffer penalties. There is a difference between taking aggressive tax positions which you can support and taking fraudulent tax positions which you can’t support. I suggest you always take the high road and stick with the aggressive positions.

Advertisements
Posted in: Uncategorized