The Questions My Clients Ask Me (Tax Related)

JOEJOEJOE

I am a CPA, and some of my clients ask me such questions as:

How much of my income do I need to report?
Do I need to report my income if I don't receive a 1099?
Are these expenses high enough, or can I add more?

Since I need to show some semblance of being ethical, I usually tell them that I will report the amounts they provide me, and I assume they have substantiation in case of an audit.

People don't realize that the IRS can request bank statements if you are audited, which allows them to find unreported income, and, if your tax return shows low income, but you have very high mortgage interest and property tax, they will want to know how you can afford your lifestyle.

Today, a client called me, and asked me to do his taxes. When I reminded him that he has to file as married filing joint, or married filing separate, he advised that he wanted to file single so that his wife would qualify for some tax credit. I reminded him that I knew he was married, and thus, it would be too shady for me to file him as single.

I am glad that I can get rid of bothersome clients by playing the "ethics card" !!

AmentsChick

hahahahaha. God I love LA.

JOEJOEJOE

OMG, does everything have to be attributed to being "L.A." related!

Sheesh!

AmentsChick

JOEJOEJOE wrote:

OMG, does everything have to be attributed to being "L.A." related!

Sheesh!

Only if you post it.

soulsinging

JOEJOEJOE wrote:

I am a CPA, and some of my clients ask me such questions as:

How much of my income do I need to report?
Do I need to report my income if I don't receive a 1099?
Are these expenses high enough, or can I add more?

Better than a client telling you you're wrong and that he doesn't need to report his income because no one gave him a 1099

sweet adeline

it's just like House says, "everybody lies."

JOEJOEJOE

soulsinging wrote:

JOEJOEJOE wrote:

I am a CPA, and some of my clients ask me such questions as:

How much of my income do I need to report?
Do I need to report my income if I don't receive a 1099?
Are these expenses high enough, or can I add more?

Better than a client telling you you're wrong and that he doesn't need to report his income because no one gave him a 1099

I have heard them all!

One year, a married couple admitted that the husband didn't have a greencard, and that he performed self-employed jobs under his wife's social security number. I ran like hell!

Wobbie

My tax guy is named Vinnie Boombah.....he works out of his van.

xavier mcdaniel

JOEJOEJOE wrote:

I am a CPA, and some of my clients ask me such questions as:

How much of my income do I need to report?
Do I need to report my income if I don't receive a 1099?
Are these expenses high enough, or can I add more?

Since I need to show some semblance of being ethical, I usually tell them that I will report the amounts they provide me, and I assume they have substantiation in case of an audit.

People don't realize that the IRS can request bank statements if you are audited, which allows them to find unreported income, and, if your tax return shows low income, but you have very high mortgage interest and property tax, they will want to know how you can afford your lifestyle.

Today, a client called me, and asked me to do his taxes. When I reminded him that he has to file as married filing joint, or married filing separate, he advised that he wanted to file single so that his wife would qualify for some tax credit. I reminded him that I knew he was married, and thus, it would be too shady for me to file him as single.

I am glad that I can get rid of bothersome clients by playing the "ethics card" !!

you mean they don't come in looking for write-offs like this:

http://www.youtube.com/watch?v=rCZRqH7sRyA