You Make the Call - Situation 3
A self-employed commercial artist reports taxable income of $7,000. Actually, her income is considerably higher, but much of it takes the form of cash for small projects and thus is easy to conceal. She considers herself part of the "underground economy" and defends her behavior as a tactic that allows her small business to survive. If the business were to fail, she argues, the government would receive even less tax revenue.

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The Answer of You Make the Call - Situation 3
A self-employed commercial artist reports taxable income of $7,000. Actually, her income is considerably higher, but much of it takes the form of cash for small projects and thus is easy to conceal. She considers herself part of the "underground economy" and defends her behavior as a tactic that allows her small business to survive. If the business were to fail, she argues, the government would receive even less tax revenue.