Unformatted text preview: earnings to pay less in tax. Even under audit, the documentation for cash is much more evasive than that for those with proper bank statements. The enforcer is likely to use deductive reasoning to prove a case. With the tax gap at roughly $300 billion per year, this problem is not likely to go away. While the numbers of annual audits are on the rise, 100% compliance is not probable under our current tax scheme and enforcement procedures. Following this class it shows so many aspects of income that the normal tax payer is going to leave off because it would not come to mind to report as income. Most think of their job as their income, but to be completely honest it comes from every little increase of individual assets....
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- Spring '11