Many underreport income, acquired illicitly or otherwise, to avoid taxes and qualify for greater handouts.

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The establishment survey is fine, but tends to underreport new business ventures.

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The IRS is well aware that many owners of S corporations are tempted to underreport salary to avoid paying payroll taxes, while taking a hefty payroll-tax-free dividend.

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And the Shanghai branch of Huaxia Bank has been exposed by a government audit in a scheme to underreport its nonperforming loans, according to Chinese news reports.

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That way, borrowers couldn't underreport their income.

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