WHAT WOULD YOU DO 6-1 Overstating Income Sofia, one of your long-standing clients comes to you with an unusual request-_she wants to add $40,000 to her business' gross receipts, even though there will be more income and self-employment taxes. This seems a bit odd since most of your clients want to pay as little tax as possible, not more. Sofia explains that she owns some rental properties and is always looking for more. Since the bank asks for copies of her tax returns as proof of income and to determine if she can repay the loans, by adding $40,000 to her income, she will more easily qualify for either new loans or refinancing. She believes that this is a form of "cheap insurance" and does not mind paying the additional tax. There are penalties in the tax law for understating your income, but none that you know of for purposely overstating it. What would you do in this situation?