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Please excuse the title, I am unfamilar with the terminology that deals with law. I am researching to find out how legal it is to keep false books for a golf course in order to make it show a loss, in order to file for hardship and not pay as much taxes. Currently I know of a course where the property taxes are about 40000 a year, and they are paying 84000 according to the books. They are doing this with multiple accounts and it is destroying the profitabilty of the course, which they want to develop. The problem is, they already have sold over 400 lots on the course with 'golf course views'. Is anything with that wrong?
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First of all, there is nothing legal about keeping false books!
If a company shows a loss, it is three times as likely to be audited by the IRS, and if the company can not prove its expenses with original receipts, there will be repercussions, including but not limited to fines and penalties (and of course, paying the actual taxes owed).
Many companies will expense as much as possible to reduce profit and decrease tax liability, and that is fine, as long as the company can prove its expenses, and they are legitimate expenses according to GAAP and the IRS.
Otherwise, I wouldn't get involved! -
never fraud the system, it will always come back and haunt you
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