Discussion:Professional Responsibilities
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| Revision as of 23:23, 7 March 2008 Wwtaxes (Talk | contribs) (They have you fi) ← Previous diff |
Revision as of 23:25, 7 March 2008 Bottom Line (Talk | contribs) (Agreed. And gues) Next diff → |
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| {{ForumReplyPost|UserID=Wwtaxes|Date=7 March 2008|Text=They have you file their 1040, but they want to try to file the business return themselves. Well. While I agree with TheTinCook, I think I still would seriously consider getting away from the likelihood that this will be one big mess at some point. I'd wager that this turns into one of those nightmares that nobody wants to do.}} | {{ForumReplyPost|UserID=Wwtaxes|Date=7 March 2008|Text=They have you file their 1040, but they want to try to file the business return themselves. Well. While I agree with TheTinCook, I think I still would seriously consider getting away from the likelihood that this will be one big mess at some point. I'd wager that this turns into one of those nightmares that nobody wants to do.}} | ||
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| + | {{ForumReplyPost|UserID=Bottom Line|Date=7 March 2008|Text=Agreed. And guess who gets the blame when the "nastygram" comes.}} | ||
Revision as of 23:25, 7 March 2008
Discussion Forum Index --> Advanced Tax Questions --> Professional Responsibilities
Discussion Forum Index --> Tax Questions --> Professional Responsibilities
| 7 March 2008 | |
| Have 1040 client, have done their taxes for years. In 2007 husband forms an LLC with two other members in the business of media/video taping. Around April of 2007, husband and one member withdraw from the LLC, leaving the third member to conduct the business. Husband continues to pay the rent for the office they rented, as well as put close to $50,000 into the business in 2007.
Wife calls last week to tell me this, and asks if they can deduct the $50,000 on their personal taxes in 2007. I tell her I can’t answer that without getting more information. I ask her who did the tax return, how they handled the accounting for the business, as well as for the member contributions and for the withdrawal of the two members. She doesn’t know, but she will find out. She tells me she filed 4 quarterly payroll returns with -0- wages. She also tells me that she doesn't think they did much with the bookkeeping.
Maybe it’s been a long week, and this has made it longer… | |
TheTinCook (talk|edits) said: | 7 March 2008 |
| You can rely on the k-1 in good faith as long as you don't give enough advice on it's preperation to be considered a "preperer" on the business return. This is one of those don't ask, don't tell, don't want to know, don't get involved situations. You need to specify the bounderies of your engagement.
If they are trying to claim capital contributions as deductions or suspicious UPE, etc on the 1040, then that is where you need to be concerned. If you can't reconcile what they are claiming with your foreknowledge or with reasonable inquiries, then turn down the return. In any event, I would not prepare a partial return in this case, it would be all or nothing. | |
| 7 March 2008 | |
| Thanks, TC. I called her back and suggested that they take the information to an experienced professional to prepare the returns. If he still chooses to prepare the returns, I think I have covered my bases until I see the K-1. Then I will decide whether or not the do the return. You're right about the partial return... I hand't thought that all the way through. My brain is kind of in a fog.
Thanks again. | |
| 7 March 2008 | |
| They have you file their 1040, but they want to try to file the business return themselves. Well. While I agree with TheTinCook, I think I still would seriously consider getting away from the likelihood that this will be one big mess at some point. I'd wager that this turns into one of those nightmares that nobody wants to do. | |
Bottom Line (talk|edits) said: | 7 March 2008 |
| Agreed. And guess who gets the blame when the "nastygram" comes. | |
