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17-Jul-2020 05:47

Every year, some disgruntled taxpayers try to dodge their IRS obligations using shady and questionable loopholes.These dubious shortcuts always sound clever, but, it’s important to realize that most of these tax stunts don’t work at all.And to say it's up to the bean-counters to catch this situation is silly, because the whole reason you're using phony dates is so that the bean-counters won't know what you really did.And this is why defenses to backdating sometimes get hard for me to understand.Backdating is dating any document by a date earlier than the one on which the document was originally drawn up.Under most circumstances, backdating is seen as fraudulent and illegal, although there are some situations in which backdating can be used in a legal and beneficial way, such as backdating a claim for a past period.The cascading litany of alleged charges is not likely to stop with the Brocade case.

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Below are several such stunts to avoid this April: (source) The IRS permits individuals to deduct “ordinary and necessary” business expenses from their income taxes: “An ordinary expense is one that is common and accepted in your trade or business.

Sometimes certain claims (such as insurance claims) can be backdated if the could not be completed at an earlier date, although there must be good reason for neglecting to claim in advance.