I’ve heard it said so many times that I can’t keep track of it: what you don’t know won’t hurt you. For some, ignorance is bliss. Maybe in some cases, this can be true. However, if you project this kind of thinking to the IRS, you might find yourself in deep trouble.
How many times have you been tempted to NOT report income because you think that the IRS will not be able to track it anyway? Perhaps your best friend might have told you – if you can get away with not reporting something, why not? Or maybe another freelance writer has shared experiences wherein he/she did not report part of his/her earnings and didn’t have any trouble.
Do you really want to risk it? If anyone can track an individual’s earnings, it’s the IRS. What the IRS doesn’t know may not hurt it, but it will probably hurt you. In fact, I’d go as far as to say that what the IRS doesn’t know just might make it even more curious.
So what is there to do? If there is one rule that you ought to remember when it comes to your taxes, it is this: declare everything. Don’t even think that you can hide.
I am not trying to make out the IRS as the big bad wolf here. All I am saying is that – cliche as this may be – honesty is the best way to go. You earn money. You pay taxes.
Now here’s something to think about: How many times have you been tempted to hide part of your income? How many times have you actually done it? (Not that I am expecting any answers for the second question.;))
Photo by howcheng