Originally Posted by
marcel
He didn't say. With a little imagination we can guess the type of activity. They could be adding extra to the expenses - I believe this is called padding the invoice. On the income side they could underreport cash sales. Seems they'd need 2 sets of books, cooked book for the accountant/IRS and a real one, or at least a way to easily know the real income. For ex. every invoice from your friend's cousin fruit & veg company shows double what was actually delivered, etc. Humans are very ingenious.
Not to make this a lesson plan on cooking the books. My point is - REDEEM LAWFUL MONEY and you're not liable for income tax. It's way easier and it's legal.