Income Determination - Cash Businesses
“My spouse has a cash business. He or she doesn’t report all the income.” All is not lost. We have experience in determining the real income from cash businesses. We utilize various court tested techniques and IRS Guidelines depending on the type of business and needs of the case. We are experienced in reconstructing a family’s true income. We have performed forensic accounting with a strong concentration in calculating the real income of cash businesses. We calculate the realistic revenues of a cash business and analyze the reported expenses to arrive at a restated net income.
It can be difficult to determine the income of a self employed individual especially when the business in question is new. In a new business, start up costs often exceeds any revenue and there may not be much left in the end. Additionally, the business will often pay many of its expenses and therefore even in a business with revenue, it may still show little income. While your husband's expenses paid by the business are not a direct form of compensation, it can be very beneficial to him. These are often referred to as 'perquisites' and are often viewed as compensation when determining income.
Our experts are experienced in calculating income for purposes of determining the proper levels of spousal support and child support following a marital breakdown. We have experience with determining income under NY / NJ Child Support Guidelines. Our expertise in investigative and forensic accounting is often required in this area of practice, when there is concern that an individual’s reported income “does not tell the real story”.
Our income determinations are always prepared on the assumption they will be scrutinized by another expert and possibly subject to cross-examination at a trial or arbitration. We are always prepared to stand behind our numbers, and provide expert testimony, when required.