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0 pointsthih91mo ago0 comments

Note that we’re talking about two companies exchanging services.

When two companies undervalue the services that they offer to each other, they pay lower taxes. This is the illegal part.

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3 comments · 1 top-level

tstenner1mo ago· 2 in thread

If the expense is tax deductable, it mostly doesn't matter whether you have $10 earnings vs $10 business expenses or $10K.

thih9OP1mo ago

Good luck explaining that to the IRS.

The IRS would be fine worth it if taxable income is unchanged.

Businesses are taxed on their net income, not get gross.

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