Does your accountant work for the IRS?
New tax rules mean accountants will be in for stiff penalties if they understate a client's tax liability. Do you think the change will help or hurt small businesses?
Lower the tax rates and I would start claiming the other 50% of the income our business produces. I would eliminate the wife's suv from doing "estimating" it really goes to the grovery store, mall and anywhere else we drive on the weekends.
Where have you guys been?
This came out last summer.
As a practicing cpa/ea/cfe there is no real change for us.
We do the planning all year long and give suggestions
on saving tax dollars the legal way, not some hair brained
tax lawyer concept of illusion that does not pass the test.
Our clients respect us for what we know and do, not for
gambling with their lives. We all hear about the bad eggs
in this industry as well as others but their are more good guys than bad.
Your article deals more with the tax season
rush and documents not supported with evidence.
I am sure most accountants are laughing at this .
Have to go now, here comes my next victim, I mean client.
lol
DR Tax
IRS does NOT ENFORCE the LAWS!!!!! If they did, then millions of illegal aliens would be in tax court for tax evasion. Not to mention millions of Welfare and Social Security slugs who work side jobs. The IRS selectively enforces the tax code where it thinks it can get the most money. internal REVENUE service. Their goal is to make money: NOT a fair tax code!
It is interesting to see that many replies refer to 'Liberals', as if they were the cause for the current economic problems.
Well, I might point out the real facts here: The Bush administration has made this change, just as they have made ALL the tax changes. The changes have happened in a Republican-controlled, out-of-control-spending congress. The 'big cats' got the breaks. The 'little kittens' have gotten screwed. The same applies to all this century's tax changes. All were done by the 'conservatives', and the Bush administration….. But now…. the 'Liberals' are being blamed? Methinks that the comments are being planted by the Bush freaks!
I use to save the maximum amount in my IRA, like a good, responsible, looking-to-the-future citizen. But, starting in 2001, the IRS decided that they would not accept my small, European-based income as "earned income". (They do consider it, when I pay taxes.) Therefore, I no longer am saving in my IRA, since I have no 'earned income'. I have absolute hate for this administration. This is just another 'screw the little guy' tactic of the NeoCons. It will take the rest of my life, just to possibly undo… what George Bush & Co. has done in the past seven years. The bright part of the future?… Bush will become powerless, FOREVER!!!, on my next birthday, 20Jan09!!! Yeah!!!!
Let's be accurate here. The IRS does not make the laws, they only try to enforce them. Blame congress for vague, poorly written law.
I can tell you one thing – I sure won't be using H&R Block anymore if they start charging a GRAND (!!)
Hopefully, they'll change the threshold from $1 in understatement to something much more reasonable. I guess it comes down to enforcement.
I would suggest that, if they like the $1,000 figure so much, use THAT as a threshold for understatement of tax due. Or, better yet, scale the fee so that it is no more than the ACTUAL UNDERSTATEMENT!!
What are these people thinking???!
I left my country around here somewhere. Has anyone seen it?
I miss it and would love to have it back.
The IRS is out of control. It is the KGB of the US. Liberals whine about the patriot act invading privacy,,,and NO liberal pin heads,ie obama, clinton, kennedy etc will want to undo the IRS,, they want its powers expanded. They know every bank account number you have, every stock you trade,,your medical,,
IRS..stands for one thing,,IT REALLY SUCKS
This just isn't right and hard to believe. I can see accountant's turning a blind eye.
I found this story on nobosh.com and thought it was a joke and wish it was.
http://nobosh.com/s/An-IRS-crackdown/42191/
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C'mon, quit your whining.
Tax professionals, especially CPAs, have a joint professional responsibility not only to their paying clients but also to the government. Your not supposed to hire a tax professional to be a knowing accomplice if you want to break the law. And if your tax professional looks the other way when they have reason to believe you are breaking the law, then he or she should be held accountable.
Your tax advisor should still legally (and perhaps aggressively) help identify for you all tax breaks that you are entitled to. That doesn't change. They just have to act as a gatekeeper in preventing the law from being broken. It has always been their responsibility to do so.