Under Reporting

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Dictionary Says

Definition of 'Under Reporting'

The deliberate act of reporting less income or revenue than was actually received, usually for income tax purposes. Under-reporting income in order to avoid taxes is an illegal practice.

When people under report their incomes, the federal government loses tax revenue that could go towards social security, Medicare and other federal projects. Corporations are especially watched by auditors because of the large tax bills at stake each tax year.
Investopedia Says

Investopedia explains 'Under Reporting'

If caught under reporting, individuals and companies will be subject to penalties and, in extreme cases, criminal charges.

Another element of the term’s use sometimes applies to public companies reporting lower revenues in a fiscal quarter than were actually recorded. If the company has already been reporting bad news and the stock is down, executives may try to take some revenue from the current quarter and push it into the next quarter. This way, the bad news can be “flushed out”, and the company can report an upside surprise in the coming quarter, potentially boosting the stock price. This practice is also illegal!

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Search results for

'Under Reporting'

  • International Financial Reporting Standards: What You Need To Know

    http://www.investopedia.com/articles/fundamental-analysis/12/international-financial-reporting-standards.asp
    ... US GAAP does not allow any upward adjustments of property and equipment, whereas
    under IFRS they can. This can have a profound impact on a firm's reporting. ...

  • Energy Companies Reporting Net Losses

    http://stocks.investopedia.com/stock-analysis/2011/Energy-Companies-Reporting-Net-Losses-PQ-PVA-CXPO-GDP0905.aspx
    ... Energy Companies Reporting Net Losses. ... Under certain circumstances a
    non-cash ceiling test write-down of properties is required. ...

  • Accounting Basics: Financial Reporting | Investopedia

    http://www.investopedia.com/university/accounting/accounting6.asp
    ... Under GAAP, companies often do have discretion to use varying ... An Investor's Checklist
    To Financial Footnotes.) International Financial Reporting Standards (IFRS ...

  • Cut Taxes By Reporting Property Damage

    http://www.investopedia.com/articles/tax/09/deducting-property-damage.asp
    Cut Taxes By Reporting Property Damage. ... Figuring Out Your Potential Financial
    Write-Off So if you've determined that your loss is covered under a "qualifying ...

  • International Reporting Standards Gain Global Recognition

    http://www.investopedia.com/articles/financialcareers/08/international-accounting-standards.asp
    ... or input - are increasingly being required to use IFRS when reporting the financial ...
    to force adoption of IFRS by fiat: No country is under any requirement to ...

  • How To Report A Tax Cheat

    http://www.investopedia.com/articles/taxes/09/reporting-tax-cheats.asp
    ... helped plan or initiate the cheating of the person you are reporting, it might ... It's
    also important to note that, under some circumstances, like attorney-client ...

  • Reporting Your Interest Income

    http://www.investopedia.com/articles/tax/10/interest-income.asp
    Reporting Your Interest Income. April 25 2012 | Filed Under ยป Bonds, Retirement,
    Taxes. Tax must be paid by investors who receive interest income from their ...

  • Free Cash Flow: Free, But Not Always Easy

    http://www.investopedia.com/articles/fundamental/03/091703.asp
    ... Investors must therefore keep an eye on companies with high levels of FCF to see
    if these companies are under-reporting capital expenditure and R&D. ...

  • Avoid An Audit: 6 "Red Flags" You Should Know

    http://www.investopedia.com/articles/pf/07/avoid_audits.asp
    ... Red Flag #4: Under-Reporting Income Tempting as it might be to exclude income from
    your tax return, it is vital that you report all money that you received ...

  • New Rules, Same Reserves

    http://stocks.investopedia.com/stock-analysis/2010/New-Rules-Same-Reserves-CRK-HK-DVN-MRO0203.aspx
    ... Email. Changes In Reporting Most companies are reporting reserves this year under
    both the old and new rules so investors can gauge the difference in methods. ...

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