Will I have a problem if I do not report the income of my small business?

Are there any penalties for a green card holder who owns an LLC and does not report all income for business (keeps cash) on federal tax return and also states that he is a citizen of the US?

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Answered By: David Hoines Law

Potential criminal tax fraud.

Answer Applies to: Florida
Replied: 8/12/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Steven J. Fromm

The US tax code requires a taxpayer to report income from whatever source derived. Cash receipts are taxable income and must be reported. Tax returns are also signed under penalties of perjury so you must not lie on the tax return about anything to avoid civil and/or criminal prosecution.

Answer Applies to: Pennsylvania
Replied: 7/16/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Tomas Ayuban

Yes, you will have a problem. You have a requirement to declare your worldwide income on a U.S. Tax Return.

Answer Applies to: Florida
Replied: 7/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Offices of Sanford I Millar, A Professional Corporation

The following is note to be construed as legal advice or the establishment of an attorney client relationship. The signing of a knowingly false return with the intent to avoid or evade income tax is a state and federal felony. Conviction on either account may be grounds for an immigration action and result in either the revocation of the Green Card and/or denial of citizenship and deportation at the conclusion of the sentence.

Answer Applies to: California
Replied: 7/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Schreiber Law Firm

Failure to report all income is subject to penalties, and if found to be done to evade taxes, is also a crime.

Answer Applies to: California
Replied: 7/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.