Is it illegal not to report legitimate business loss if I don't want to show a loss for the year?

Forum|Forum|1 year ago
April 9, 2025
1 reply
0 views

I don't want to raise any flags by showing too many down years with my business. Can I just not report some of my actual legitimate expenses to keep my profit a little positive?

Ask the Experts - Tax Due - April 2025

AmyC

Employee

A business is expected to report income 3 out of 5 years and should be in business to make money. The IRS stated at one of their tax forums that taxpayers are expected to take every deduction to which they are entitled.

By not reporting much income, you are also affecting your Social Security down the road and disability if you need it. The Social Security Administration gave a heartbreaking seminar on people underreporting and then need help and haven't paid in enough.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"