It doesn’t matter if you are a famous ex-president or a regular old taxpayer; the advice is the same:
Don’t tell lies on your tax returns.
It’s never worth it… and if you think you can talk your way out of it with the tax authorities, you didn’t figure that right either!
The numbers will speak for themselves, and it may be years later when you must remember why you did what you did. It is best always to tell the truth and “swim with the current”; that way, you don’t have to remember when and where you lied or what new lies you created to cover for the first set of lies.
If you don’t get audited and therefore don’t get caught lying, it doesn’t mean you didn’t lie; it means you just didn’t get caught! The problem is that if you do get an audit, it is usually three years or so later. The tax authority has direct access to the figures on your bank accounts (they ask your bank directly without your permission, by the way). The paper trail is there that you didn’t figure would be there if you do get audited – which is way too late to do anything about it!
Interest and penalties are always added, but jail time is rare. That should be somewhat comforting. 😊