The Tax Preparation Blog

Archive for the ‘Tax Preparers’ Category

Question: I joined a consulting firm organized as an LLC. It is charging me for out-of-state taxes. Should it?

I received 70% of what is billed for my services to the client – the LLC retains the balance for its overhead and general partners. If I didn’t work, or the client didn’t pay, I didn’t get paid. I left the firm, earlier this year due to lack of work – but now they’ve come back to me demanding I pay state taxes.

I performed services in Washington State for a client business situated in Washington and never left the state, but the LLC is insisting that I pay taxes on income from California, Georgia, New York, etc. The firm apparently has individuals providing similar services at other client businesses in other states, Apparently the firm’s tax preparer is trying to associate my earnings with those other states.

I paid self-employment and federal income taxes directly from what I received.

I received a K-1 and filed tax returns properly for federal purposes.

Washington has no income tax.

It seems wrong on multiple levels. What am I missing?

Answer: As a partner, you shared in the income of the firm–not just the money you brought in. Since some of that income is sourced to California, Georgia, etc, you owe taxes to each of those states.

The fact that Washington doesn’t tax you is moot.

Buck to the future: Dollar stores revamping to keep business booming

Christina Franklin loves dollar stores with a passion that nearly transcends shopping. “I’d live here if I could,” the Subway assistant manager said during a recent jaunt to a Family Dollar in east Denver.

Earnings Report: Intuit (NASDAQ:INTU) Jumps on Earnings Beat

Question: If you knowingly allow your accountant to cheat on your taxes- are you still held accountable or not?

I have heard people say that they will not be held accountable for tax fraud, if it is their accountant who is filing the fraudulent claim, ( and signing his own name as tax preparer) is this really true?

Answer: If your return has fraudulent information on it, YOU are liable unless you can prove that you had no knowledge of the fraud. Even then, the IRS will most likely hold you responsible and you would have to go after the preparer for the money.

Tools of the trade when detecting abusive return preparers.(Tax Tidbits): An article from: Leader’s Edge $5.95 This digital document is an article from Leader’s Edge, published by Thomson Gale on November 1, 2005. The length of the article is 570 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tools of the …

Tax preparer faces fraud indictment.(Business)(The Lowell woman is accused of falsifying her clients’ deductions, and could face prison if she is … article from: The Register-Guard (Eugene, OR) $9.95 This digital document is an article from The Register-Guard (Eugene, OR), published by The Register Guard on February 27, 2010. The length of the article is 801 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax preparer faces fra…

Fourth Circuit upholds return preparer conviction in RAL wire fraud case.(refund anticipation loan): An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on April 1, 2010. The length of the article is 472 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Fourth Circuit upholds return pre…

San Jose: Tax preparer accused of defrauding clients, stealing their refunds

Anthony Vo, 40, who owned and operated Anthony s Accounting & Tax Services in San Jose, is facing 12 counts of wire fraud, 12 counts of preparing false tax returns on behalf of his clients and four counts of filing his own false individual tax returns, according to the Department of Justice.

Woman Says She Was Scammed By Tax Preparer

Question: Thinking about applying to work for an accountant.?

Is there anything I need to consider to prevent myself being taken advantage of? I don’t want to become a scape goat. I have a couple of years of accounting course work in college, but no real practical work experience. As long as one is not a CPA nor a Licensed Agent, is there any legal repercussion that could befall a would be tax preparer, bookeeper etc, if e.g. he is asked to sign off on something he doesn’t quite understand etc?
edit: my point is this. I’d like to become an ‘apprentice’ of sorts, but I’m worried that some scrupleless individual might seize the opportunity to find the next “David Duncan”

Answer: well if you do not understand do not sign off!!!

IRS to consider commercial preparer registration. (Internal Revenue Service) (column): An article from: The National Public Accountant $5.95 This digital document is an article from The National Public Accountant, published by National Society of Public Accountants on March 1, 1990. The length of the article is 1001 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web bro…

NSA proposes administrative entity to register tax preparers.(ALLAROUNDNSA)(National Society of Accountants): An article from: The National Public Accountant $5.95 This digital document is an article from The National Public Accountant, published by Thomson Gale on October 1, 2005. The length of the article is 459 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitl…

Majority of taxpayers hire a professional to file their returns

Make sure you have a trustworthy preparer Before turning your tax return over to someone else to handle, make sure you find an honest and competent preparer.

Barbara Cook TAX PREPARER LICENSING TIPS Franklin NC