According to news reports, “Girls Gone Wild” founder Joe Francis has pleaded guilty to two misdemeanor counts of filing false tax returns and one count of bribing Nevada jail workers in exchange for food. The plea deal will allow him to avoid further jail time in a tax case that spanned two states and several years. In the agreement, Francis acknowledged omitting nearly $563,000 in interest income on his 2003 tax return.
When you sign your tax return, you are accepting responsibility for the accuracy, completeness, and truthfulness of what you reported. And if the IRS determines that you intentionally included or omitted information that fraudulently reduced your tax obligation, you could be in trouble.
The lesson here is simple and clear: Tell the truth on your tax returns. And don’t accept advice from anyone who tells you otherwise.