Joe Kristan has a post describing the efforts of Frank Black of North Carolina. As Joe notes,
“- When he wrote checks to his college-age daughter, he deducted the amounts as ‘supplies’ and equipment purchases.
– He told the Tax Court that his six and eight-year old children worked 1,000 hours per year in his business.”
Those are just two of the examples that led to over $70,000 of civil fraud penalties. You can read more here. As Joe said, “Don’t do that stuff.”