>>10597682>What's the complication?
Oh, there's just a lot of stuff that a regular business owner gets wrong because they don't understand legalese.
Like when you run multiple businesses (like AM does) then when you bankroll one business with funds from another (totally legal) there's specific procedures, and you have to report it a certain way to make sure the irs understands what you're doing. It's to avoid the appearance of money laundering. But a lot of people don't do it because it doesn't occur to them that criminals also do that to cover their tracks.>Why would the IRS be chasing down cons?
99% of cons will never show up on the IRS radar. They don't make enough money. AM is a little different because they take a lot of business trips to hawaii and japan. Those will be flagged for inspection. They're probably making vacations of it, but the fact that they also actually do business (get contracts signed, launch evens, schmooze industry guests) will cover most issues.
Remember, most irs audits don't actually find anything wrong, but most people are woefully unequiped to handle an audit. They lack the papertrail.>Is management using it as a personal slushfund and writing off personal expenses as con expenses?
Oh, no doubt, but a con business the size of AM actually has a legal defense.
It's like real estate. They can write off a ton because they're basically always on the job. The car they lease, the clothes they buy, it's all about building an image.
The thing that'll most likely fuck AM over if anything is payroll. How they handle it, who handles it, etc. Their books are almost non existent, which isn't a sign of guilt, but makes it nearly impossible to defend against accusations.
Matsuri is a multi million dollar (in revenue, yearly) company. Despite this, their profit margins are fairly low. They'd be considered a small business by any standard, and some banks wouldn't give them a loan based on this size. So odds are they're under the radar