What he is doing is not according to the tax code and if he were audited he would be penalized for taking a deduction that was specifically not allowed.
Further, he admitted he did so knowingly (on a Pro-Trump forum that shall remain nameless) so they could make the case that he committed tax fraud rather than simply making an "honest" mistake.
However, while the above is technically accurate there is little chance that u/BigMikesBlackCock's deduction would trigger an audit, much less any other action.
I doubt it represents a ton of lost revenue to the IRS, which is what the audits are designed around, from what I have been told.
People get away with much more than that my friend. The IRS will most likely go after them before they go after you. Plus with a good attorney you can always play dumb.
As long as you are willing and able to pay the tax liability/judgment if and when they figure it out you are normally good to go.
All of the above does not apply once you start getting into 7 figures annual income however. Then you need to pay a pro, but you can afford by then.
What he is doing is not according to the tax code and if he were audited he would be penalized for taking a deduction that was specifically not allowed.
Further, he admitted he did so knowingly (on a Pro-Trump forum that shall remain nameless) so they could make the case that he committed tax fraud rather than simply making an "honest" mistake.
However, while the above is technically accurate there is little chance that u/BigMikesBlackCock's deduction would trigger an audit, much less any other action.
I doubt it represents a ton of lost revenue to the IRS, which is what the audits are designed around, from what I have been told.
People get away with much more than that my friend. The IRS will most likely go after them before they go after you. Plus with a good attorney you can always play dumb.
As long as you are willing and able to pay the tax liability/judgment if and when they figure it out you are normally good to go.
All of the above does not apply once you start getting into 7 figures annual income however. Then you need to pay a pro, but you can afford by then.