This is a true story. Names and identifying details have been changed to protect the innocent.

Nancy had a feeling that $40,500 was a good reasonable compensation figure for her as owner of Nancy’s Nail Salon. She didn’t have any facts or data to back it up, but she wasn’t trying to get away with anything either. Her accountant thought it felt right, too. Who would check, anyway? Nancy just wanted to get back to the salon and keep making money. Her accountant jotted down $40,500 and reported that to the IRS.

Turns out Nancy’s feeling was correct. READ MORE