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Originally Posted by x2drich2000
Just a few random question to throw into this mix for consideration 1) What penalties could the IRS impose if you are caught not reporting the income 2) Realistically what do you think the penalty would be if caught?
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DJ, I will not answer your questions, but will instead give you this advice: It is much better to play by the rules.
I was audited about 5 years ago. After $20k in fees to my accounting firm, the IRS concluded its audit and wrote me a check for $4,000. The audit sucked! And it cost me $20k. Luckily, I was squeaky clean (in fact, more than squeaky clean). But
had I been found to owe money, or worse, intentionally not reported something.... it would have cost me much more in accounting-firm fees (because they would have had to argue the IRS' findings and/or negotiate a settlement) and then I would have owed taxes, interest, and perhaps penalties. And I bet I would be on their radar for another audit in the near future.
If you are paying taxes, it means you made money. Take comfort in that and do what you are supposed to do. Sleep comes a lot easier when you do!