Unformatted text preview: If I were the buyer I would still purchase the business after the seller told me that he substantially under-reported income to the IRS to reduce his taxable income. I would make him show or tell me what his net income actually was to make sure that I could possibly still be profitable when I bought the business. Him understating his net income so his taxes were lower has nothing to do with me purchasing the business. If the IRS found out this then it is McClure’s problem and not mine since I had nothing to do with it....
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- Fall '11
- Marketing, criminal law, Net Income, Taxation in the United States, McClure