In this episode, we dig into a real C-corporation case where lifestyle and ledgers didn’t match.

What started as a routine audit of a small nursery turned into a full breakdown of how personal spending hides inside business books — and how that creates the kind of red flags the IRS can’t ignore.

From buried luxury car upgrades…
To inflated “miscellaneous” expenses…
To an owner who meant well but misunderstood the rules…

This case became a perfect example of why perception matters just as much as documentation. You’ll hear how misclassified vehicle expenses unraveled into reasonable compensation issues, what the IRS looks for in a lifestyle mismatch, and why “my accountant should’ve caught that” isn’t a defense.

This episode teaches the number one lesson most small-business owners never hear:
Your books tell a story — make sure it matches the life you’re living.

New episodes drop every Saturday.