WATCH WHAT YOU PUT ON A CREDIT APPLICATION

IRS may use it against you, as a woman who ran a cash-intensive massage therapy business at home discovered.  She failed to file tax returns and didn’t cooperate with the Service during the audit.  IRS reconstructed her income, relying on the income she listed on a credit application she filed with a bank. The Tax Court sided with IRS (Trescott, TC Memo. 2012-321).