Need some advice

[David1980]

I won't really address what you should or should not do, but FYI:

A local tax "professional" had many happy clients, and his fame spread. At some point the IRS/NCDOR noted some problems with his returns.

And no doubt all of his customers never thought to ask questions about why he was getting them so much larger refunds than others could.

I do not feel pity for these taxpayers. They are either stupid or they know something is going on, and just do not want to ask because they think if they do not know that they can't be held responsible. If they accidentally stumbled into his office -- MAYBE. But when they're going to this guy because he's building fame and becoming famous for his super large refunds, sorry, you (the taxpayer that is) should know better.

[AuditorTurnedGood]

Somewhat fast forward: The preparer was arrested, tried, and given an immediate active jail sentence. Every one of his clients tax returns was later audited.

So, be very careful of what you might be stepping into......

FE

I'm already in this client up to my ankles at the moment. The representation work could be interesting. I revert back to my mantra: speak softly, and carry a big E&O and litigation insurance policy.

ATG

[FEDUKE404]

Time bomb is ticking

I won't really address what you should or should not do, but FYI:

A local tax "professional" had many happy clients, and his fame spread. At some point the IRS/NCDOR noted some problems with his returns.

In a nutshell, the preparer was fabricating all kinds of stuff on the tax returns. (A previous client came to me, showed me the same tax records given to that preparer, and the records simply did not match what was on the tax return. Let's just say they had been enhanced.)

My advice to the potential client was that perhaps an attorney should first be contacted. (At that point, there were only "rumors" about the preparer.) I never heard from the potential client again - maybe I asked too many questions that were new ones to the client?

Somewhat fast forward: The preparer was arrested, tried, and given an immediate active jail sentence. Every one of his clients tax returns was later audited.

So, be very careful of what you might be stepping into......

FE

[fliszt]

Don't forget

that MN uses a different POA than the Feds do.
Larry

[Dusty2004]

I agree

I second what Dave said. That way you know what was and what was not filed and you can see the returns to see if anything "unusual".

Dusty

[DaveO]

If you are on eservices get a POA and pull transcripts for the time periods in question. That will give you both peace of mind or perhaps more billable hours for you.

[AuditorTurnedGood]

Got a new client in August of 2009. Had to do a bunch of catch up work on accounting, etc, because the previous CPA hadn't done much. Noticed a few odd items from the previous year, but didn't think much of it. Old accountant was impossible to get anything from.

Fast forward to today. Just found out the old accountant was arrested and charged with a variety of felonies relating to his own tax returns at the behest of the MN DOR.. From what I can tell, he was remanded to custody at his bail hearing.

Two questions: Should I check to see that all of the items he said he filed (941's, tax payments, etc) were actually done? We got a notice about a week ago about the Q1 2009 941 not being filed, so I have my doubts anyway. Two: considering what the guy was arrested for and what he did for a living, and knowing the state has more resources availible than the Feds as a rule here, should we be prepared for an audit notice as a result of this?

ATG