2006-12-01 07:47:54 · 6 answers · asked by deliciousKimbap 2 in Business & Finance ➔ Small Business
Is it legal to claim 25% of what you make, or must you claim 100% of it?
2006-12-01 07:51:01 · update #1
Then you will be committing tax evasion which is a criminal offense. As long as you get by with it you will be cheating the tax system which puts additional tax burden on your family and friends that have regular jobs. You will sleep less soundly at night knowing that you might be audited or, if you fall out of favor with any of your family or friends, that they might turn you to the IRS for a reward. Happens all the time.
I know the temptation is there with a cash type business, but if you want to sleep like a baby at night then don't do it.
2006-12-01 10:54:09 · answer #1 · answered by rkoblitz 6 · 0⤊ 0⤋
You must claim 100% of what you earned. I have heard that there are no actual laws in the lawbooks that say a person even has to pay taxes, I believe it was on 20/20 or a similar show. However, not many people have the time or money to fight it out in federal courts. You could possibly get away with it, or at least for a while, but there is a very good chance that you will be investigated for tax evasion and defrauding the U.S. government.
2006-12-01 07:54:18 · answer #2 · answered by Yomi 4 · 0⤊ 0⤋
I take it to mean that you are in control of a corporation and take
a minimum wage or so. You pay tax and Social Security
based on your salary, just like everybody else. The rest belongs
to the Corp. and will pay its own taxes, etc.
2006-12-01 07:55:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Then you're only liable for the taxes on your fraction.
2006-12-01 07:49:55 · answer #4 · answered by rmijares 2 · 0⤊ 0⤋
You will be audited by the IRS and prosecuted for fraud and tax evasion.
2006-12-01 07:50:32 · answer #5 · answered by Ms. Mikki 2 · 0⤊ 0⤋
It'll come back to haunt you later.
Be honest.
2006-12-01 07:51:05 · answer #6 · answered by Ambassador Z 4 · 0⤊ 0⤋