Discussion:Handling dishonest clients
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Revision as of 20:34, 28 March 2007 Skq9545 (Talk | contribs) (Just to get some) Next diff → |
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| As an aside, never confuse avoidance with evasion nor aggressiveness with recklessness.}} | As an aside, never confuse avoidance with evasion nor aggressiveness with recklessness.}} | ||
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| + | {{ForumReplyPost|UserID=Skq9545|Date=28 March 2007|Text=Just to get some perspective. When most of you prepare returns for a Schedule C client, do you ask for a copy of their General Journal or just a trial balance and P&L? | ||
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| + | With regards to their cancelled checks, I do not have access to those. However, I know from talking to the owner last year that they had their homeowner's policy charged to the business. }} | ||
Revision as of 20:34, 28 March 2007
Discussion Forum Index --> Tax Questions --> Handling dishonest clients
| 28 March 2007 | |
| What do you do about clients that you know are recording personal expenses as business expenses? I know that client has charged all of the fuel expenses for three big gas guzzlers to the business. Mostly they drive to and from work. Occasionally they might have to pick up parts. Also, charge all insurance costs to the business, but no way to know which is homeowners, which is shop and which is car insurance. Also charged truck payments for the son to vehicle expense. I just told them I cannot deduct the truck payments, only interest expense on the vehicle loan. I said last year I wasn't going to work with them this year because I didn't believe they were honest and here I am again!!!!! I didn't tell them that I wouldn't work with them. Argh!!!! | |
AugustaCPA (talk|edits) said: | 28 March 2007 |
| I would give them some soap-on-a-rope and tell them they will need it when they end up in a Federal Prison... | |
| 28 March 2007 | |
| Your response made me laugh. I really get frustrated with these clients who think they can charge all of their personal debts, etc to their business and it is okay. I think I have a soap on a rope at home, maybe I can give it to them at the next meeting when we discuss their taxes. It seems that a lot of people have been told they can charge all kinds of expenses to their businesses and get away with it. I had one guy who made purchases at the diamond store for his wife. Thank goodness, he prepared his own taxes. He didn't want me doing his accounting after I questioned several purchases including golfing tournaments, ski trips, etc. | |
Chris2lane (talk|edits) said: | 28 March 2007 |
| Shirley, you question that you don't know how their insurance expenses are made up. You can find out by looking at the cancelled checks and if that doesn't help, ask to see the policies. If any of my corp. clients bring in info and the #s don't seem right, I ask for verification. | |
AugustaCPA (talk|edits) said: | 28 March 2007 |
| The following happens to me at least five times a year: a client wants me to prepare his return one way to show the bank or mortgage company when he/she is trying to buy a house, etc.; then prepare the return another way when it comes time to file and pay taxes. Do they realize they are asking me to 1) break the law, 2) violate ethical standards, 3) flat out lie, and 4) risk losing my license? | |
Corptaxhelp (talk|edits) said: | March 28, 2007 |
| One of my good friends teaches advanced particle physics at an ivy-league university. On the first day of class, he explains his cheating policy. It is simply: if you want to cheat, go ahead. Cheating is the way of the world and if you can cheat and get ahead, go for it. However, if I catch you cheating, I will make it my life's work to see that you are expelled from this university and that my peers at every major university in the county will know why you were expelled. I'll make sure that the government contractors who call me looking for researchers know your story. The world of particle physics at this level is small and I have been at this long enough to know everyone. So, if you choose to cheat, don't get caught.
I have a similar policy with my clients: If you're going to lie to the IRS, you have to lie to me first. If you can fool me and you pass the sniff test, then more power to you. My liability policy only says I have to make a reasonable effort to ensure my clients are telling me the truth about their situation. It does not require me to give them a polygraph test. However, if I think you're lying to me, I won't work with you. And, if I have facts that show you are stealing money from the government, I have no problem with turning you in and collecting a reward. As an aside, never confuse avoidance with evasion nor aggressiveness with recklessness. | |
| 28 March 2007 | |
| Just to get some perspective. When most of you prepare returns for a Schedule C client, do you ask for a copy of their General Journal or just a trial balance and P&L?
With regards to their cancelled checks, I do not have access to those. However, I know from talking to the owner last year that they had their homeowner's policy charged to the business. | |
