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Discussion Forum Index --> Accounting Questions --> Amend prior year return??
Adf1002 (talk|edits) said:
| 20 March 2008
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| A friend of mine asked me to look over their 2006 and 2007 return. When I did, I noticed a major issue. He has rental property. First I see in 2006, the rental property was disposed of and they get the whole deduction. However, as I see 2007, that is not the case, since that same property is still around. The "accountant" said it was disposed of in order to get the full loss. In calculating the correct amount, he was supposed to only get a less than half of that amount due to income limitations. Now there are other issues too like Sch A being done incorrectly as well. But here's my issue. Would you go back to amend the return in 2006. In 2007, I told him to report it correctly and carry it forward. Place only the correct amount of loss allowed. He's looking into selling the property, hopefully in 2008 or 2009. But to go back to amend and then report the losses when in the year you sell a few years from now, you will get the full amount of the losses, I just didn't know if that made sense, since that whole thing will wash out. Didn't know if anyone else had come across an issue like this before.
Thanks.
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Kevinh5 (talk|edits) said:
| 20 March 2008
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| Recommend he AMEND IT
See Circular 230
and your own ethics
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Kevinh5 (talk|edits) said:
| 20 March 2008
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| now that I see you are a CPA, also see the AICPAs statement that you recommend he amend it, and if he doesn't you have to determine whether you must disengage
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Kevinh5 (talk|edits) said:
| 20 March 2008
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| I don't get why you are even asking. This should be automatic.
DOES ANYONE OUT THERE HAVE ANY ETHICS?
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Kevinh5 (talk|edits) said:
| 20 March 2008
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| Oh, and consider reporting the prior 'accountant' to the IRS fraud hotline. He should be out of business.
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Adf1002 (talk|edits) said:
| 20 March 2008
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| I recommended that he amend the return. I'm not doing the return. I don't prepare my friend's returns. I wanted another opinion on the matter to see if anyone has come across an issue like this.
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Adf1002 (talk|edits) said:
| 20 March 2008
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| The accountant that prepared this tax return is not even a CPA. From my understanding, they prepare all returns incorrectly. They are ones that all the law enforcement guys go to, since they know all the "deductions". I hear it from my husband around this time of year. He asks me if they can take certain deductions b/c someone said they can. And of course, last year, all these guys were asking my husband if I can take a look at their tax returns from 2004 since those were all being audited. It was like 5 or 6 guys that ended up owing money because they all went to this "accountant". The deductions are incorrect.
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Natalie (talk|edits) said:
| March 20, 2008
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| Well, it sounds like the IRS is on to this person already. There are several discussions on here about turning in other preparers that you might want to check out.
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