Okay, so I’m a pessimist. The guys at Enron were convicted today and that’s great, the systems works, right? Some people see a dead roach on their kitchen floor and think “The pest control is working. Hurray for Truly Nolan!!!” I see a dead roach and think “There are roaches in my house!!!!” If the guys at Enron did whatever they did I figure there are a ton or people breaking rules that are nearly impossible to enforce.
I don’t cheat on my taxes. I don’t know how. And I don’t know anyone who cheats on their taxes. But do I think a lot of people are “cheating”? Hmmmm. That’s where it gets confusing. What is cheating? If you “break the rules” but don’t get caught did you cheat? What if you don’t break the rules but you get audited?
Do business take deductions for expensies that are not business related? Is there a way for the “tax man” to know what was discussed at each of those deducted lunches? What are the chances of being audited in the first place?