Wednesday, January 13, 2010

U.S. v. Yip (9th Cir. - Jan. 13, 2010)

As your 1099s begin to arrive in this new Tax Year, let me be the first to remind you that there are serious downsides to running an "off the books" business that entirely fails to pay any taxes. Especially if, when you're audited, you start fabricating loans and the like in an effort to derail the civil audit.

How much of a downside? About four-plus years in prison.

P.S. - Having bank accounts in Hong Kong during this whole thing probably doesn't help either.