Owning a business requires sound record keeping when tracking expenses. Whether filing a corporate return or a schedule C on your individual return improper deductions designed to lower personal income may lead to a tax fraud investigation.
This week, a federal court in Texas unsealed an indictment against the owner of a corporation. Allegations contained in a four-count indictment claim the owner made willful and material false statements on his personal tax return.
The charges cover federal income tax returns from 2007 to 2010. He purportedly under-reported the income he earned during these years.