Last week I stated that that only fruadulent acts lead to criminal trouble and I listed five things that can cause real trouble. This week I will add four more things you do notwant to do that, if done, can lead to a criminal investigation: (1) claiming non-business expenses as business expenses, e.g. entertainment expenses or home repairs; (2) usng your home office for other purposes (it has to be used regularly and exclusively for business, it cannot be your man or woman cave); (3) always rounding numbers to the nearest dollar, especially on your expenses (this tends to make the IRS think you are exaggerating); (4) if you’re self employed, you must make a profit in at least three out of five years.  Otherwise the IRS views your enterprise as a hobby and any losses will be classifdied as “hobby losses” and disallowed. This often happens with people who own and show horses or dogs.