Is it legal for a CEO to put his mistress on the payroll and claim her as a business expense on the income tax?
In more general terms, what happens if you put a phonied-up business expense on your return?
Asked on 7/29/10, 6:28 am
1 Answer from Attorneys
John DeLancett
Law Offices of John DeLancett, PL.
Both could result in a tax adjustment plus penalties and interest. Depending on the magnitude of the situation (tax liability, intent to defraud, wilfullness), they could result in a civil fraud penalty (75% of the tax) to potential criminal charges of tax evasion.
Answered on 8/03/10, 7:23 am
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