Feedback Form

Tax Cheats Ultimately Cheat Themselves

Tax Cheats Ultimately Cheat Themselves

If you're like many small business owners, you're glad to have tax day behind you. Even if you did file an extension, you had to figure out what you made (or didn't) and that's usually a major pain.

For many, tax time is an exercise in creativity. How much can I get away with before the Uncle Sam catches on. A few years back we needed a new accountant for our air tour business. One we talked to, a former I.R.S. agent, said to us, ““Some business owners want to sleep well, others want to eat well.” Which are you?””

What he was telling us was that we were talking to the wrong guy if we wanted to cheat on our taxes. We knew that if we wanted to get a good night’s sleep on the eve of an I.R.S. audit, we’d come to the right place. In the ‘been there, done that’ sense we knew the I.R.S. philosophy was ‘guilty until you can prove yourself innocent,’ and a good accountant with insider knowledge was worth his weight in gold–maybe literally.

It’s all too easy to try to save taxes by understating your income, particularly if you run a cash business. Likewise, it’s tempting to deduct non-business expenses -- who's to know, right. Wrong, and a really good accountant will advise against it.

But if I.R.S. audit worries aren’’t enough to keep you up at night, consider that understating your business profit will handicap your ability to raise money for the company. Lenders and investors won’’t be amused when you show them your tax reports and than add, with a wink, that they really don’t show all your income. Dishonest business practices, no matter how good the real numbers may look, don’t make you a good investment.

In addition, while you may eat well in the short run, when it comes time to sell your business, you’’ll find your plate far from full. That’’s because businesses typically sell for a multiple of net income. So, if a home based businesses like yours sell for five times net, every understated dollar of profit will cost you five dollars when you sell.

All in all, I'd rather sleep well anyway. How 'bout you?





Tax Cheats Ultimately Cheat Themselves - To learn more about this author, visit Kate Lister's Website.

Like this article? Share it with your friends

Related Forum Posts Article Feedback
Article Feedback No article feedback found.
Leave Your Feedback

Related Articles Related Articles
Great Integrity is Necessary for Great Marketing
  The marketing of your business is a clear symbol of your integrity and authenticity as a business person. By not marketing, you cheat yourself out of making an important contribution to the world and you cheat peopl...
Tea in the Saucer
  The small things indicate future behavior
Do You Keep Using The Same Ineffective Search Engine Optimization Strategies?
  The sheer number of searches performed on the major search engines such as Google, MSN and Yahoo can run into hundreds of millions, which makes it necessary for you to understand the proper search engine promotion t...
Business Ethics and Values Do Not Have Expiration Dates
  Have you ever thought about your business ethics and values as having an expiration date? Even if you think not, maybe you should read this article anyway.
6 Ways to Use Rebates and Incentives for Increasing Sales!
  Rebates and incentives are two of the most common methods used to increase your company’s sales. Unlike other advertising strategies, rebates and incentives speak for themselves. Thus, as long as they’re done proper...

Related Forum Posts Related Forum Posts
The Market Says The Market Says
Re: Don’t worry, Enrich your life and Be happy Re: Don’t worry, Enrich your life and Be happy
Re: Are we defined by what we do for a living? Re: Are we defined by what we do for a living?
Re: SEO and Ken Evoy Re: SEO and Ken Evoy
Paying for downloaded music can suck Paying for downloaded music can suck
Is a Patent Worth it? Is a Patent Worth it?
Starting up a business Starting up a business
Is This The Answer For A Busy Entrepreneur?? Is This The Answer For A Busy Entrepreneur??

Related Forum Posts Related Businesses - Evan Elite Authors

To learn more about the Evan Elite Author Program please contact us.

About The Author


Kate Lister
(Visit Kate's Website)
I started out in banking and spent six years as a commercial lender with two of the nation’s largest banks. Pantyhose convinced me to start my own home-based consulting business. But even running my own business I was still wearing them. So after 8 more years a former Navy flyer convinced me to trade my business suit for a flight suit and we bought a biplane for air tours. Over the next 16 years we became the oldest and largest barnstorming business in the country. Along the way we wrote two books: Finding Money--The Small Business Guide To Financing and The Directory of Venture Capital, both published by John Wiley & Sons. Surprisingly, both the writing and the flying we did mostly from home in our underwear, thanks to 25 eager (and fully dressed) pilots who replaced us in the air as the company grew. Now we're working on a third book, Undress For Success: The Naked Truth About Making Money From Home, and a website with oodles of useful info at Undress4 Success.com
About The Author

View Author Blog
View Author Blog

View Author Video
View Author Video

Free Downloads


Kate Lister's

Complete
List Of
Home-Based-Business
Articles

First Name
Last Name
Email
Which is bigger?
Giraffe or Mouse
 
If you enjoyed this article, get Kate Lister's Complete List of Home-Based-Business Articles For FREE!

More Kate Lister
Home Based BusinessStart Up Money From Angels
Work at Home and Pass Gas On Earth Day April 22
Small Business Grants Fact or Fiction
Small Business Loan Programs Salvaged In 2009 Budget
Start Up Funding Lessons From Success
Sage Wisdom About Borrowing Money For Your Small Business
Tax Cheats Ultimately Cheat Themselves
Buy or Start a HomeBased Business
Home Based BusinessBank Loans To Grow
Become An Author


 
 
 



Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?


Sales Lessons From Starbucks And Dell