Wanda is reviewing her tax returns from the previous year and is shocked at how much tax she paid the government. She had good income but had to pay a large number of self-employment taxes on top of her normal federal and state tax liabilities. She slumps back onto the sofa and tells Cosmo, You know, Cosmo, some days I feel like I work for nothing. The government gets to keep more of my money than I do. He just wags his tail, thinking she is talking about how handsome he is. Wanda cant get her tax bill off her mind and decides that she is going to handle this the way rich people do and start keeping two sets of booksone for her and one for the tax man. After all, since she is the sole proprietor, no one really has to know how much she really takes in from selling dog treats. She starts to plan how she is going to make this work, but as her plan comes together, she feels increasingly uncomfortable about her decision. For Discussion For Discussion 1.What are the legal and ethical consequences of Wanda keeping two sets of financial records and failing to report all of the income from Salty Pawz? 2.Even though Wanda is a sole proprietor, who else could be harmed by her actions? 3.Are there long-term problems she could be creating for herself that she doesnt see at this point? If so, what are they?

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answer Legal and Ethical Repercussions of Wandas Actions Wandas decision to keep two sets of books and underreport income from Salty Pawz has signific... View the full answer