Accounting Question

1.. Do NOT RESPOND to my post. You will initiate your own post by asking a question that relates to the post you will write (that will address the topic in my post). The post has to have a curiosity score of at least 60.Respond to two questions posted by your classmates.

1. submit your own original question

A. What is your question?

B. Add a Description

C. Cite your Source

Packback Assignments:
How significant is the issue of tax noncompliance in the United States?
Topic: How significant is the issue of tax noncompliance in the United States?
Find at least one example of an individual or corporation who committed fraud
on their tax return. Discuss the facts related to the incident, and comment on
why you think they cheated?
1. submit your own original question
A. What is your question?
B. Add a Description (Minimum 300 words)
C. Cite your Source
2.submit a response to two other questions posed that week by your classmates!
To receive full credit, you should make all of your submissions achieve a curiosity
score of at least an 80 out of a 100. Here are a few things to ensure that you reach
an 80:
Don’t have spelling errors
Use paragraph breaks (don’t type one long 350 word paragraph)
Include a link to an external source
Add a description (where you insert your text)
If your curiosity score is less than 80, just click on the “options” tab and edit
your submission until you get it to an 80 or higher.
Classmates #1
Why do so many people commit tax fraud despite knowing the consequences?
Tax fraud is a serious crime with serious consequences. Tax fraud encompasses many
behaviors, from hiding income to filing misleading returns. According to authors
Gregory A. Carnes and Suzanne Youngberg (2024), “income tax fraud is far too
prevalent, and several celebrities and athletes have had well-publicized cases of not
paying the taxes they should have” (pg. 1-29). However, tax fraud can occur in local
businesses as well as among national celebrities or companies. An example is the
2024 conviction of Nicholas Lucidonio and Anthony Lucidonio, a father and son, who
were sentenced to 20 months and an additional three years on probation. They were
owners of Tony Luke’s, a famous cheesesteak restaurant located in South
Philadelphia. During the previous decade, they failed to report more than $8 million
dollars in revenue. They also reported only a portion of the cash wages they paid their
employees. “The Lucidonios defrauded the United States out of a total of $1,321,042”
(Madison Montag, 2024).
The reasons for their continued fraud may result, first and foremost, from the fact that
theirs was a cash business. The temptation to commit tax fraud is greater with cash
businesses because it is easier to hide cash revenue than those that can be traced using
checks or online accounts. There was apparently some kind of conflict among the
family concerning franchising, and that could have placed pressure on the business to
keep more money. Sociologists discuss reasons that people break rules with the
classic theory known as “Techniques of Neutralization” by David Matza and Gresham
Sykes (1957). One technique is the denial of injury, which is the belief that if there is
no person who really gets hurt, the behavior is acceptable. It is easy to think that tax
fraud does not hurt anyone since the government already has trillions of dollars, and
people already pay a great deal of taxes. Perhaps the Lucidonios may have thought
this, resenting the government taking money from a business they had built since
1992. Regardless of the reasons, the Lucindoios still had to face serious consequences
because tax fraud does hurt society and is a serious problem.
Source: Popular Philly cheesesteak restaurant owners sentenced for tax
fraud – pennlive.com
Techniques of Neutralization: A Theory of Delinquency on JSTOR
Classmates #2
Why do individuals commit tax fraud when they know the consequences?
Tax noncompliance in the United States is, unfortunately, a very common issue.
According to the Bipartisan Policy Center, “nonfiling and underpayment represent
$77 billion and $68 billion of the gross tax gap, respectively.” The most common tax
noncompliance is underreporting. Bagel Company owner, Joseph Smith, was
sentenced to prison for three years and six months for making numerous
misrepresentations to potential investors. Joseph lied about the company’s profitability
to get individuals to open more Bagel Company franchises. When the individuals
learned about these misrepresentations, they demanded Joseph pay their money back,
which he denied them a refund. Joseph spent the majority of these profits on his
personal expenses rather than the company’s expenses. He also did not file corporate
or individual income taxes for the three years that he was misusing the company’s
funds. Joseph had to serve three years in prison and pay back $2,100,450. I believe
the reason Joseph committed tax fraud was due to greed. Money is the root of all evil
and is very evident in this situation. He wanted his company to be more profitable, so
he did whatever he had to do to make that happen.
Source: Office of Public Affairs | Bagel Company Owner Sentenced to Prison
for Tax Evasion and Wire Fraud Conspiracy | United States Department of
Justice
Breaking Down the Federal Tax Gap | Bipartisan Policy Center