 Some examples of business tax fraud include companies improperly classifying their employees as contractors, paying their employees in cash, and failing to withhold taxes from employees' paychecks. Lehrman says most businesses in Maryland follow the law when it comes to taxes, but business tax fraud could be more widespread than most people believe. Kevin McManus, WFMD News. For more, go to WFMD.com, 930 WFMD News.