April 18 Deadline to File

[bobm]

This year , April 18 is the deadline to file your tax returns. Be VERY careful as to who you hire to help prepare your taxes. Yesterday, a IT ( hot a CPA) was audited on his last 4 personal / business tax returns . He had a rather large group of businesses that enlisted his book keeping and tax preparation services but had his clients sign the returns but not having his signature. He charged about $100 / hour. on average of 3 hours / month per client plus his tax preparation fees. His personal tax returns showed just over $100,000 income all 4 years, however the IRS requested his bank to provide his bank deposits prior to his audit, it showed way over $200,000 have been deposited in every one of all 4 years. OOOPSY DAISY !!! He was very cagy during his audit interiew and was caught in many many falsehoods. He had NO paper trail of his transactions as he shreaded them after he posted " them " on his computer files. He now faces a tax bill of about $300,000 plus penalties of 40% plus interest. Guess who else will get a invitation letter for their business and personal audits ?

 

[Smart Red]

With DH 'demanding' my attention I was lucky to get mine filed by the 6 month extension deadline. I'm not sure when I'll be able to start them. Soon I hope.

 

[bobm]

My wife sat in on the review of this audit and found that it warented a review of the area manager. Area manager reviewed the case on Friday afternoon and decided when all of the information on this case as well as his clients' tax returns evidense is collected and reviewed and the tax payer given a chance to further explain old and new evidense regarding his tax returns and business practices. If it is further found to be lacking, this case will be turned over to the fraud investigation division of the IRS for criminal investigation and prosecution. So please check out your tax preparor's credentials carefully before you hire him / her.

 

[catjac1975]

When we were young and stupid we hired this "really great accountant."All of his clients were audited and we owed some back taxes-not much but it was very
stressful. There were people who lost homes and businesses because they owed so much. He preyed on the ignorant.

 

[bobm]

Have you noticed all of the TV and radio adds to "fix" your tax problems ? Most of them are scams to line their pockets with your money. The IRS will work with the tax payer to solve their issues and / or offer payments at a much lower interest rate than the "fix your tax problems" people. That is how rampant the tax preparer industry is instead of first getting information from a client as in garbage in and garbage out without first asking questions about the data that may cause red flags for the IRS to invite the customer for a sit down audit. These types of tax preparers are representing their clients at the IRS audits every week if not almost daily for an additional fee. Save yourself the time and headache of being audited by first asking questions about the tax preparer's education as well as their track record.

 

[bobm]

The IRS is reporting that this year a 400% increase of internet, cell phone and mail adds trying to get your personal information to then get your money from your tax refund and/ or your bank account. The IRS DOES NOT contact anyone via text or e-mail... ever !

 

[catjac1975]

Yea, I had a few desperate calls to contact the IRS before they took me to court. I know only frauds call my cell phone for anything. I also know all of my taxes are always up to date. The poor people that fall for that.

 

[ninnymary]

We just got a call a couple of days ago. IRS said they were going to file a lawsuit if we didn't call them back immediately. I wish this kind of stuff could be stopped. I know there are at least a few who fall for this type of scam. Like Cat, we are always up to date with our taxes prepared by a reputable CPA.

Mary

 

[bobm]

Yesturday, a gentleman was audited for 2 years of his tax returns that he himself prepared. He had made every mistake one could possibly make on almost all lines on the return as outlined by tax law. He greatly overstated his car and travel expenses, his entire household grocery purchases, his personal cell phone and computer, he claimed his entire house expenses and mortgage, taxes and HO insurance as his "office" expenses, he also included his wife's airplane fares and hotel and meal expenses when she accompanied him on all of his business trips. Now, this gentleman is a College Professor in Economics and Business for about 30 years. He travels to foreign countries and advises governments on international trade affairs and taxes. He will have one healthy tax bill to pay after this mess of a tax return examination and additional years of his tax returns is added for audit is complete and the claimed false deductions are not allowed. One wonders just what this guy is actually teaching the next generation of business people as well as his advise on foreign trade.

 

[catjac1975]

Mine are done and had to pay some. Sounds like the professor was a cheat-not uninformed.