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 ?
Underreporting by dodgy operators, the bane of Indian broadcasters, will cease to be an issue once the new systems are in place, says Paritosh Joshi, president of distribution and advertising at Star TV India.
* For individual underreporting, more than 80 percent comes from understated income, not overstated deductions.
In April this year, furthermore, Kanebo said it had been in negative net worth on a consolidated basis for nine years, from fiscal 1995 through fiscal 2003, as its former management falsified reports by means of such accounting fraud as inflating sales and underreporting expenses.
* More than 80 percent of individual underreporting comes from understated income, not overstated deductions.
The study, which is based on findings by the Texas Commission on Environmental Quality (TCEQ), applies the Commission's findings on the underreporting of certain toxic emissions nationwide and concludes that at least 16 percent of toxic air emissions "have been kept off the book."
The model assumed the same rate of over- or underreporting of drug use in omitted pharmacies as in reported pharmacies.
Second, we examined the relationship between underreporting of drug use and several potentially associated variables to determine whether the prevalence estimates could be improved by adjusting for reporting discrepancies by certain subgroups of respondents.
The underreporting of fall 2000 enrollments artificially inflated the enrollment change for the few schools that did not fully complete the fall 2000 survey.
By 1994, however, the Survey was only underreporting the number of recipients by 14 percent.
Underreporting may be one reason that the crisis has failed to grab the necessary attention for mobilizing adequate resources in support of the children affected, he said.
The National Center for Health Statistics in the United States examined the accuracy of self-reported utilization and found significant underreporting of hospitalization days by respondents aged 55 years and older compared with those under the age of 55 (National Center for Health Statistics 1987).
But we think the 11.4 percent number is way too low, since there's so much underreporting."