Small Business Tax Frauds

Author: Robert K Minniti

This online course provides accounting and auditing professionals with a practical and up to date understanding of how small businesses commit tax fraud—and the red flags, investigative approaches, and internal control weaknesses that make these schemes possible. As tax enforcement continues to intensify and the IRS expands its use of analytics and compliance initiatives in 2026, practitioners must understand common fraud patterns, concealment tactics, and high risk behaviors exhibited by small business owners.

Participants will examine real world cases, review common income tax and sales tax fraud schemes, and learn how small businesses hide income, inflate deductions, misuse entity structures, or maintain dual sets of books. The course also covers the IRS Dirty Dozen Tax Frauds for 2026, the motivations behind fraudulent behavior, and the tools available to detect and prevent tax fraud within small business environments.

Publication Date: May 2026

Designed For
This course is ideal for professionals responsible for identifying, preventing, or responding to tax‑fraud risks in small‑business environments.

Topics Covered

• Elements of fraud and how they apply to tax fraud cases
• Tax avoidance versus tax evasion and key legal distinctions
• IRS Tax Frauds 2026 and the Dirty Dozen list
• Small business entity types and related tax fraud risks
• Income tax fraud schemes including income suppression and false deductions
• Other common tax fraud schemes found in small businesses
• Red flags for sales tax fraud and income tax fraud
• Tools and methodologies for detecting tax fraud
• Internal controls to mitigate tax fraud risk within small business operations

Learning Objectives

• Identify common tax fraud schemes committed by small businesses
• Describe red flags and behavioral indicators that signal potential tax fraud
• Recognize the reasons individuals and small business owners commit tax fraud
• Identify how keeping dual sets of books is characterized in fraud examinations
• Determine which actions do not generate IRS penalties
• Identify the IRS Dirty Dozen Tax Frauds for 2026

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None