What Do You Know about Money Habits That Are Illegal – There are Three of Them
It is a fact that every person, when it comes to money, has some bad habits. Individuals have different approach when it comes to money, such as spending when they could have saved it, throwing it away without any second thought, and others are plain ignorant on how to handle money. These actions or decisions could have reasons behind them, even if cannot be accused as crimes nor a dumb action. It is said that the bad habits of some people could stem from their financing concerns like fraud and tax avoidance. You may think this is not true but some can attest that this is occurring every day and others are doing it.
Let us present some habits which may seem harmless but can be unlawful or dumb or even a mix of both.
Not declaring money is the first habit that we will present. For instance, you are moonlighting on the side so that you will receive extra payment that is paid in cash. When you have your extra money, you spend it for whatever your purpose, and when it is time to file your tax return, not a mention of this extra income on your file. This action may be minor enough to qualify for an investigation, but there could be a possibility that an audit will uncover the truth and will put you in a tight situation. Be aware of the free check stub template printables found online that will ensure you have a receipt for all money you earned, and thus you will not have fear when a tax office personnel will visit your home.
Another habit considered as a bad one is signing a check under another person’s name. Checks are still used today as legal tender, although not as popular before, and are used by some who find these convenient or just being used to the mode of payment. So if someone like your parents would ask you to sign under their name, if you do, you are actually forging a document and committing a crime unless you are granted a power of attorney.
Another bad habit is to lie when filling up an application. Take a loan or insurance applications for example, where we know how some would falsify and change their answers whenever they find that the cost is not affordable to them. It may seem to others that there is nothing wrong with it when they have the car or property on their name, but this application to gain money can theoretically put you in prison or at the very least a fine because you have committed fraud.