cash intensive business

Topic The General Accounting Office (GAO) claims that the individual income “tax gap” is quite large. The GAO is referring to individuals who have the ability to determine their own reported income. These individuals are small business owners – they are self-employed. There are many small businesses that are mostly transacted in cash (cash intensive). There is a tendency for much of this income to go underground, i.e., to be unreported to the government.
Paper details

Answer the following questions and send in your results in a Word document via the D2L dropbox. You are required to utilize RIA checkpoint as a resource. Your paper must be properly cited.

• What are some of the various types of cash intensive businesses in the U.S. economy? Name at least seven.
• Cite one specific tax court case in which a cash intensive small business evaded taxes. Give the specifics of the case and the findings of the court. Be sure to note the name of the tax court case and your source for research. Note: the more detailed you are, the higher your grade.

Other Suggested Resource:
www.irs.gov
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