Discussion:The client and his friend
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Discussion Forum Index --> Basic Tax Questions --> The client and his friend
Discussion Forum Index --> Tax Questions --> The client and his friend
Actionbsns (talk|edits) said: | 14 March 2008 |
| I know there is a thread about this, but I couldn't find it. Just came back from client's office and had asked the bookkeeper what was in the travel expense ($10,000+ this year, about $900 last year). Trip to Samoa and one to Reno. I asked him what was the purpose - he looked at me incredulously and said "well duh!! Surfing and a family reunion." I asked him if there was a CPE seminar attached there anywhere, or any business intent at all. Well, guess what, he had earphones and a dvd player while on the plane doing a CME, so that's tax deductible, right? Told him that he needed an organized seminar or class or something truly business related at the end. Well, that's not what Scott told him. Scott is the other shareholder in the corp. At that point I was getting a little edgey, wanting to lash out and tell him maybe Scott ought to prepare the return and sign it. Oh, he remembered he carried some medical supplies with him to Samoa. No other enlightening information, not part of Doctors without Borders, or a missionary or anything, so I'm left thinking most likely he had some aspirin and his own prescriptions. Don't you just love these altercations, especially at the end of the day? And oh yeah, did I tell you about the dvd with the earphones and the recorded CME - he did about eight times. | |
| 14 March 2008 | |
| I've actually used that line ' well have ______ prepare the return and sign it under penalties of perjury'.
I point that line out every time! You gotta love em | |
Death&Taxes (talk|edits) said: | 14 March 2008 |
| Discussion: Ugh! I hate when client's meet their friend's Is that it? | |
| 14 March 2008 | |
| I could not tell from Actions story if that was the doctor with the dvd player or the bookkeeper, or whether the friend was another doctor partner. Probably was. | |
Southparkcpa (talk|edits) said: | 14 March 2008 |
| A few years ago I met a CPA who worked for a Federal lab. She told me that she took a basic review (3 day )course in Hawaii. A course offered every where. She told me her boss was very encouraging to "milk" the system. So she gets a 6K vacation paid for by us. For that reason, my engagement letter makes it VERY clear that if you pay from the biz you intend to deduct it and you are responsible.
Don't misunderstand, I try to keep my clients in a "safe" zone and many, many times talk them out of bogus deductions upon inquiry but I am so sick of school administrators, gov't employees all getting it paid and reimbursed and our clients get hosed. | |
| 14 March 2008 | |
| D&T,
That's the thread Action is talking about. Of course, it has to be one that I started. More ammunition for my friends in Hawaii to have fun with me! Now, I am off to find the funniest tax season thread because you've got to hear this story. Extremely comical! Tom | |
Actionbsns (talk|edits) said: | 14 March 2008 |
| Yep, D&T, that's the thread. Last night as I was falling asleep I thought of another way I could have found it. Tom, are you sure my doctor client isn't friends with your client? Maybe Scott is out there doing taxes or at least offering tax advice to all of our clients. Crow, sorry I wasn't clear. Bookkeeper said to ask the doctor about the travel expense. Doctor is the one with the DVD wires in his ear and who is so amazingly literate in his oratory. Can't you just see this guy in your head - ala Bevis and Butthead - with wires in his ear and a dvd thing in his pocket so that wherever he goes it "qualifies" for CPE credit and becomes tax deductible? He's wearing ratty tennis shoes, a shirt showing his stomach, needs a shave, meets his next new patient "Hey Dude, s'up?" Now that's a confidence builder!. | |
| March 15, 2008 | |
| Client just sucked a whole bunch of energy from me. Client handles trust funds on behalf of others. I had recommended they do a reconciliation of the trust funds as of 12/31/07. They adjusted the books and sent me the schedule. It includes transactions from 2008, which of course I asked about. It took almost half an hour for them to understand why 2008 transactions should not be included with a reconciliation that is for 12/31/07. I am simply drained. | |
| 15 March 2008 | |
| Natalie honey Aunt Emmy advise you to learn how to spit. Nothin makes them bloodsuckers shut up and listen like a good mean clint eastwood western style spit. | |
Actionbsns (talk|edits) said: | 15 March 2008 |
| Same guy who called me immediately on my return from California, the one with the huge and scary audit looming (i.e., state is going back 15 years), just sent me a FAX of a 1099 I issued to his in house bookkeeper. It's questionable if during an audit, it would stand that she is an independent contractor, and payroll is a potential issue in this audit. She wants the 1099 amended to be issued in the name of her life partner's corporation because it's going to cost her about $1800 in taxes. Told the client all the funds are paid to the bookkeeper and the fact that it's going to cost her some taxes is not his problem. Reminded him that he gave me a 1099 also and it's going to cost me some money. He says her CPA assures everyone this is not a big deal and an easy change to make. The reason to exist for the corporation- fixing golf carts and automobiles. | |
| March 15, 2008 | |
| Thanks Aunt Emmy and Beth. I just had some spitting lessons from my sons. (They're real good teachers. They reminded me I should only spit in the toilet or sink, however.)
And what about the client that keeps taking a salary when the S-corp is generating losses and SH has no basis? I thought client understood that one (had tears in the eyes when we talked about it a few months ago). There are carryover losses from 2006 and 2007 with no basis and client is still taking salary. Geez. I guess I need to really go over the carryovers on the 1040 and the tax that they still have to pay. | |
| 15 March 2008 | |
| I changed my mind. I'm posting my story here. The reason. It's fairly appropriate. Talk about sucking energy from you.....
A friend of mine is on the board of a community organization, a not-for-profit. He tells me they have some problems. Their accountant and president have issues with their structure. He tells me the board about me and they ask if I can attend a meeting. They brief me on their situation. Their current accountant and their current president are claiming the organization could lose the exempt organization status and it's causing friction with the other members and they wish someone to settle this matter. They ask me to help them. I do the research, write my report and I show up at the next meeting to share my findings. During my presentation, the president shows up a bit late. He's mad and he's starts screaming at everyone. He starts in on me. "I've seen your report. It's wrong!" I decide this is not worth it and I decide to leave. Now he's ranting and raving at me. I tell him my report is correct, but I don't want the business that badly. He calls me some names and I just laugh at him. Now the others pile on him for yelling at me. At this point, I figure you can't get this kind of entertainment for free anymore, so I decide to sit down and watch the mayhem ensue. People yelling, screaming, shouting, it's all out-of-control. An old-fashioned bar-fight is about to break out. My friend sits down next to me and we just start laughing. He says, "Now you know why I called you. You're the only one I know who will get them on the right path. Don't worry, the others on the board saw the initial report and want you because it's professional, researched, which is exactly the opposite of what we were getting. They know you're right and those two are idiots. This has happened every meeting since this issue started over 5 years ago. They will stop arguing in about 2 minutes." They did. I got the job. I don't know I want it. Tom | |
| March 16, 2008 | |
| Geez, Tom. Well at least you were an observer in that one. I don't think I'd put up with arguing at every meeting though. | |
| 16 March 2008 | |
| Tom, you could always invite them over for dinner and smoke em out. | |
Actionbsns (talk|edits) said: | 16 March 2008 |
| Yeh, Tom, my vote is for popcorn. They probably deserve it. | |
| 16 March 2008 | |
| You guys are great! We should write a sitcom for accountants! LOL!
I ran into my friend at a St. Patrick's Day Party and he said the accountant resigned before he was fired which is why I got the job. He got word they got tired of him bringing up the issue every meeting (they meet every 6 months, the last two were "special sessions"). The president's term is up in 3 months but they had enough votes to oust him but said it wasn't worth enough fight. I told him "smart move." He indicated things will die down now that the accountant is gone and the president is on his way out. He wants to know soon. I told him nothing yet. Maybe I will invite him over for popcorn! New one: Client called. Complained I didn't deduct the sales tax they paid on their car because the salesman at the dealership said they could. I asked them since when is a salesman at a car dealership qualified to give tax advice? I said maybe from now on he should prepare their return. When I explained IRC Section 164 (I even gave them the actual citation) allows a choice between state income or sales taxes, they got the message. Pre-St. Patrick's Day Joke: Q: What's Irish and sits outside? A: Patty O'Furniture!
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