Sometimes people are tempted to under-report their income on their tax return. Putting aside reasons of morality, ethics, and the risk of getting caught, there are other reasons for being honest. It can actually be to your long-run benefit to fully report your income. Please give two reasons why it could be to your long-run benefit to fully report your income, even if it results in higher tax payments this year. Remember, do not give a reason based on ethics or the risk of getting caught by the IRS. Hint: One of the reasons is embedded in the multiple-choice set MC5, but you do not need to use that reason. For maximum credit, I must learn something new and your answers must be supported by proper citation, references, and links. If you are excited about what you are learning, chances are I will learn something new from you.

Reason 1

Reason 2

References