Question: Why would a taxpayer want to report income that hasn’t been earned?
Answer: In order to claim the refundable earned income tax credit.
In one case, the Tax Court didn’t believe a taxpayer earned the amount of income she claimed from flea market sales; there were no records or other proof of the income (all supposed transactions were in cash).
Did you miss this month’s Big Ideas for Small Business® monthly update? No worries, you’ll find it right here on my website. To stay current on important issues be sure to sign up today!
