How experts use tax returns to find hidden assets - Crawford Ellenbogen

Business owners engaged in fraudulent activities often try to manipulate their companies’ financial statements. Fortunately for fraud experts, business owners’ tax returns aren’t as easy to misrepresent. Certain items on an owner’s Form 1040 can reveal hidden assets and income sources, particularly lines reporting income from wages, tax-exempt interest income, retirement plan distributions and refunds. Experts may also use information from Schedules A through E to build legal cases against owners committing fraud or attempting to divert marital assets.