8 Ways People Cheat On Their Taxes
Moving Income Into the Next Tax Year
Small businesses which use cash-based accounting systems sometimes delay or avoid taxes by pushing income into future tax years. If a small business owner has a very good year, she will have to pay a proportionally large tax bill. If she delays sending invoices to her customers in November and December, that can cause her customers to not pay the invoices until the next tax year.
The Home Office Deduction
The IRS allows filers to claim a deduction for the use of up to 300 square feet of their homes as home offices. Many filers claim larger home offices than they really use, often doubling the size of this deduction.
