Please help with a question I have about business finances.

Also, when I set her up with a credit card processing machine, she wanted it linked to her personal account. When I asked why she is doing this, she said her late husband did not put her name on the business account, and she cannot access the money. She doesnt now anything about business finances and I am trying to explain to her that she shoulnt do this, but I do not know anything about this either. What should I tell her?

Depending on how she files her taxes, there may not be any ramifications.

IE: as long as the correct amount of tax is paid on the income then the IRS will at most give her a slap on the wrist for not filling out the "proper "form(s).

On the other hand..... she could go to jail if she is cheating the IRS.

The tax authorities may investigate the company and she could be considered as committing fraud on the company and liable for prosecution.

There could be big trouble with the IRS.