Under Reporting

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Under Reporting

The act of deliberately understating personal income or corporate earnings. One usually underreports in order to pay less in taxes. For example, if one makes $50,000 in a year and reports $35,000, one does not pay taxes on the extra $15,000. Underreporting is illegal because it deprives the government of tax revenue.

Occasionally, underreporting refers to an illegal practice in which a company refrains from reporting earnings in one quarter in order to report them the following quarter. Companies usually do this to drive up the stock price.
References in periodicals archive ?
There is evidence in the accounting literature that the underreporting of chargeable time is an issue that the profession has struggled with for the past twenty years.
After the employer filed for a refund, the district court granted summary judgment favor of the taxpayer, determining that the Service lacked authority to assess employer FICA taxes on unreported tips in the aggregate without first determining the individual employee's underreporting and first crediting the employees for the employer's share of the assessed taxes.
17 over the practice of falsifying its financial statements by underreporting the ratio of Kokudo's stakes in it.
At the least, this pilot suggests vast underreporting of food poisoning and that different strategies are available to improve reporting.
The taxpayer also argued that individual employee determinations of underreporting were needed to properly credit their Social Security earnings records for the FICA tax paid.
The IRS has long believed that underreporting of tips by service employees is rampant in the food and beverage industry.
org cites internal documents and quotes with attendees to a 2000 American Bar Association at which Dunkin' Brands' Chief Legal Counsel in charge of Loss Prevention, Stephen Horn, spoke about the company's aggressive tactics to conduct surveillance on franchisees suspected of underreporting sales and then litigate them.
17 over its long-running practice of underreporting the ratio of stakes held by Kokudo and other major shareholders.
We know that significant underreporting occurs," says Lindsay.
As noted in our article, pathogen-specific multipliers for underreporting are needed for many diseases.
District officials say the numbers might be the result of overreporting on Burbank's part and underreporting elsewhere, or the district could be mistakenly characterizing incidents as batteries.
While the Institute supported the concept of TCMP, it also used its testimony to continue its objections to the growing use of "financial status" auditing by revenue agents examining individual tax returns, even in situations in which there is no suspicion of income underreporting.