Discussion:CPA is needed

He wanted me to help him with an audit, even though I told him that he needs a CPA for this matter. However he insisted me to take care of it. Now he is asking me to find CPA for him, who would negotiate with IRS the bill. He is probably would be billed in the amount of $120K for 2004, 2005, and 2006. The reason: very aggressive deductions, and no backups. Does anybody here want to take this challenge? Oh, he is in Bergen county NJ

http://www.taxalmanac.org/index.php/User:Skasselea

Yes, he has money. His yearly Net was $700K+, he trade on stock market, losing tons of money, and doesn't quit. I guess if he has money to lose, he has money to pay to CPA-attorney. He thinks he can do it because I told him that he might try. This is just the way I talk. I never insist on my opinion, and always keep the door open for a client. I hate when they say: you told me, and I follow your advice, so now it's your fault. If you help him to reduce the bill, I‘ll win, because I recommended him a good CPA. If you won’t help him to reduce the bill, I win too, because, if a CPA attorney is not capable of doing this, it means that I’m not a bad accountant after all. :)

thanks Michaelstar, I'll ask.

I don’t know why. As I said, I don’t know about the process after an audit. I know that if I go to court when I have a traffic violation ticket they first negotiate with me, and offer a better deal. So I thought that maybe it works kind of the same way here. Instead of spending money on court IRS just negotiate with him smaller amount. But maybe it's just silly of me to think this way.

When I worked with an auditor, I already negotiated with him a lot of things… to my surprise. I’m just thinking that professional might do the better job than I did.

If you're still interested reply back here.

No, as a matter of fact, he is not getting any 1099 from medicaid.

Anyway… would anybody want to take this challenge, he is still waiting for my referral.

Compromises on the tax are based either on inability to pay or doubt as to the liability, and I see none of that here. However, from reading Mr. Davidoff's columns in the NSA magazine, your client, like some of his patients, might at least seek a second opinion from him.

When I’m talking about aggressive deduction, I mean that he paid from his c-schedule to c-corp all 1099-misc ($160K). And then he deducted the entire amount from c-corp. Does he have all backups? No, he doesn’t. But he can’t understand it. He pays himself rent from C-corp, and think that it’s deductible. When I add rent to his personal return, he doesn’t understand: I pay mortgage, utility!… , when I reduce mortgage, he doesn’t understand it ether… Don’t ask me questions. It’s not my decision. Auditor allowed to pay from sch. c only $50K, taking into consideration state average income for this kind of business. . And the client is trying to argue it. Hey, he wants to spend more money for court. Come on! Give him a chance to do that.

I had the last meeting with an auditor a couple of weeks ago, and he said that it was the last one, and that he is closing the case. With my estimate, my client would have to pay about $120K.

And I don't know whether he wants it or not. I think you can ask him if you want this case.

Mscash, I sent you an email, on your email address, that is posted at your profile. Can you reply on it, please.

Мне предложили порядка 15 резличных obtions (видимо так же как и большенству из нас). Я разделила 100% на 15 И делаю инвестирование пропорционально в каждую из них. Почему? Потому что если вы внимательно посмотрите на performance всех этох mutual фондов, И бондов, то вы нигде не увидите стабильности. Кто-то из них вдруг выскочит наверх, а на следующий год окажется в самом низу. Но в общем маркет всегда идёт в верх. И если не горит снимать деньги, то их можно пропорционал'но разбросать, И таком образом вместе с маркетом постепенно идти вверх.

Don't have a Russian keyboard so I can't respond, but I can almost read it...hehehehe

вива Путин!

The New Tax Guy