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Hi, I have a friend who is going through a divorce. Her income

Hi, I have a friend...
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!
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Answered in 2 minutes by:
5/22/2013
Michael J, Esq.
Category: Criminal Law
Satisfied Customers: 3,473
Experience: Licensed attorney experienced in criminal matters, having represented hundreds of clients with every misdemeanor and felony imaginable.
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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...
Michael J, Esq.
Category: Criminal Law
Satisfied Customers: 3,473
Experience: Licensed attorney experienced in criminal matters, having represented hundreds of clients with every misdemeanor and felony imaginable.
Verified
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Michael J, Esq.
Michael J, Esq.
Michael J, Esq., Lawyer
Category: Criminal Law
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Experience: Licensed attorney experienced in criminal matters, having represented hundreds of clients with every misdemeanor and felony imaginable.

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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