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Michael J, Esq.
Michael J, Esq., Lawyer
Category: Criminal Law
Satisfied Customers: 3425
Experience:  Licensed attorney experienced in criminal matters, having represented hundreds of clients with every misdemeanor and felony imaginable.
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Hi, I have a friend who is going through a divorce. Her income

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Hi, I have a friend who is going through a divorce. Her income is from consulting. She has outstanding invoices due to her, but I know she isn't try to collect on them. You know, the more income you have, the more that affects the financial calculations. In a cash based business, the only income you need to report is income rec'd, not owed. Her business holds no inventory, so she uses cash based accounting, not accrual accounting. I want to know if this is illegal? Or, just convenient that it is working out this way... I don't want her to get into trouble. Thank you!

Michael J, Esq. : Hello -Thank you for contacting JustAnswer. My name is Michael; I look forward to helping you with your criminal problem today.
Customer: Hi Michael. Thank you
Michael J, Esq. : She is doing nothing "illegal". As you mentioned, as long as she claims everything she receives with the IRS, there is not problem. All income must be claimed, minus deductions. As far as whether she is violating any order from the court - that's hard to say without seeing the order - but if a Judge were to find that she is "intentionally underemploying" herself, he could attribute income to her that she has not actually received, but he would somehow have to know about it. Make sense?
Customer: Yeah, that makes sense. She is reporting everything that she is receiving, just not trying to get everything that is owed. but, it goes a little more than that. Because she isn't trying to collect on her invoices, her income has been so low that she even got food stamps. Is it the same explanation? It's okay now, but as soon as invoices are paid, she needs to claim it?
Michael J, Esq. : Hold a sec, phone call. :)
Customer: np
Michael J, Esq. : Yes, she has to claim once received.
Michael J, Esq. : Anything else I can answer?
Michael J, Esq. : If not, if you valued my time, I'd appreciate you rating me. :)
Michael J, Esq. : Good luck!
Michael J, Esq. : Michael
Customer: no, that's good. thank you...
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