Compare Financial Declaration Against Tax Returns

---
name: compare-financial-declaration-against-tax-returns
task_id: trusts-estates-private-client/compare-financial-declaration-against-tax-returns
description: Comparing a sworn financial declaration against multiple years of tax returns requires source-by-source income reconciliation, correction of improper expense deductions in rental income calculations, and assessment of the legal consequences of material misstatements in sworn filings.
activates_for: [planner, solver, checker]
---

# Skill: Compare Financial Declaration Against Tax Returns — Discrepancy Analysis Memorandum

## 1. Subject-matter triage

- Treat the engagement memo or governing instruction as the scope-control document; identify which years, entities, properties, and income categories are in scope before comparing figures.
- If the source set covers multiple years or multiple income sources, enumerate each year and each source first, then analyze them one by one rather than using a blended comparison.
- Distinguish between wages, self-employment income, pass-through income, rental income, investment income, and any other disclosed source, because each is measured differently for a sworn financial declaration analysis.

## 2. Failure modes the skill is correcting

- Accepting explanatory notes or party assertions as sufficient without verifying the underlying tax schedules and supporting attachments.
- Comparing only headline adjusted gross income and missing source-level discrepancies that matter to the declaration.
- Failing to recalculate rental income after removing items that are not appropriate for the relevant income analysis, even if they appear as deductions on a tax return.
- Treating pass-through allocations as irrelevant because cash was not distributed, when ownership allocations may still matter for available income analysis.
- Ignoring business entity expenses that may mask personal expenditures or inflate deductions.
- Omitting the legal consequences of material misstatements in a sworn filing.
- Ending an issue description without quantifying the variance, tying it to another source document, and stating the client consequence.

## 3. Legal frameworks / domain conventions that apply

- A sworn financial declaration is made under penalty of perjury; material inaccuracies may implicate perjury principles, sanctions exposure, and credibility findings. Cite the governing perjury statute or rule applicable in the forum, and the declaration’s oath language if included in the source set.
- Tax returns filed under penalty of perjury are generally strong comparative evidence when they conflict with a sworn declaration, subject to the governing evidentiary rules. Cite the applicable evidentiary authority for admissions, party statements, or authentication as relevant.
- Pass-through income from an ownership entity may be reportable and may be considered available income even if not distributed in cash. Cite the governing family-law or support-income authority used in the jurisdiction or engagement materials.
- Rental income for family-law or support analysis is generally evaluated from gross receipts less ordinary and necessary operating expenses; non-deductible items must be treated consistently with the governing income standard. Cite the controlling statute, guideline, regulation, or case authority relied on in the matter.
- Business income may require adjustment where the tax return reflects accounting or tax choices that do not track actual availability of funds for support purposes. Cite the applicable support-income framework or case law.
- The comparison must follow the source hierarchy in the record: declaration, tax return, schedules, attachments, and any explanatory correspondence.

## 4. Analytical scaffolds

1. Identify the declaration date, tax years covered, and each income source disclosed in the declaration.
2. Build a source-by-source comparison table for each year in scope, showing the declaration amount, the corresponding tax-return amount, and the resulting variance.
3. For each variance, determine whether the mismatch is factual, timing-based, classification-based, or caused by an adjustment needed for family-law income analysis.
4. For rental income, start from the relevant tax schedule, identify deductible and non-deductible items, and recompute the net figure using the governing support-income approach before comparing to the declaration.
5. For pass-through income, identify the ownership schedule or equivalent attachment, match the declared amount to the allocation shown on the return, and note any omitted undistributed income that remains relevant under the governing standard.
6. For business income, test whether reported deductions appear ordinary and necessary or whether personal items may have been run through the business; note when the record supports a deeper tracing or expert review.
7. For each discrepancy, expressly address any explanation given in the record, then accept, qualify, or reject it with reference to the documents.
8. Close each issue with: the scale of the variance, the document that corroborates or contradicts it, and the concrete consequence for support, credibility, disclosure accuracy, or motion practice.
9. Assess whether the aggregate pattern suggests isolated error, inconsistent reporting, or a potentially material misstatement requiring correction.
10. End with practical recommendations tied to the record and the procedural posture, including amendment, supplementation, targeted discovery, expert review, or motion practice as appropriate.

## 5. Vertical / structural / temporal relationships

- Compare each declaration entry to the corresponding tax-year entries rather than only comparing totals across documents.
- If income moves across years, identify whether the difference is timing, reclassification, or omitted reporting.
- If multiple owners, properties, or entities appear in the source set, keep each source separate and do not aggregate them unless the documents themselves do so.
- Where the tax record contains schedules, K-1s, rental attachments, or supplemental statements, treat them as controlling for the line-item comparison unless contradicted elsewhere in the record.

## 6. Output structure conventions

- Start with a brief scope statement identifying the declaration, the tax years reviewed, and the income categories compared.
- Use an issue-by-issue memorandum organized by income source and tax year.
- Include a comparison table or equivalent structured format with declaration amounts, tax-return amounts, and variances for each source.
- For each issue, include:
  - the relevant amount or scale from the source documents;
  - the cross-reference to the related schedule, attachment, or explanatory document;
  - the legal or practical consequence of the discrepancy.
- Provide a distinct section on legal significance that addresses sworn-filing risk, evidentiary weight, and credibility implications, with controlling authority cited by name and section or case.
- Provide a distinct section on recommendations that uses imperative verbs, identifies the responsible role if stated in the record, and ties each step to a deadline or near-term procedural milestone if available.
- If the record contains an explanation for a discrepancy, address it expressly rather than leaving the comparison unresolved.
- Keep the memorandum litigation-ready: concise, document-anchored, and written so a reader can trace each conclusion back to the source materials.