Disturbing

[S T]

Just received this from CSEA - a 1 hour workshop for Quicbooks Data Files
and what to expect for future IRS Business Audits

Session Description:
IRS has begun requesting QuickBooks® data files in examinations of business taxpayers. This course will cover IRS authority to request QuickBooks® data files, the format of the files requested, what changes can be made to a file before turning it over to the IRS, and protecting sensitive data included in the files.

Learning Objectives:
Attendees can expect to learn:
• Which type of file and password level the IRS is requesting
• What the IRS says it will do with the data file
• IRS claimed legal authority to request data and their response to refusing to comply with the request
• How to limit the information given to the IRS in the data file
• Alternatives to providing a QuickBooks® data file
• How to take a proactive approach to protecting your client’s privacy
• How to fix common client errors with click-by-click examples

Speaker:
The speaker for this session, Mark F. Seid, EA, CPA, is admitted to practice before the U.S. Tax Court. Mr. Seid earned his Bachelor’s degree in Business Administration from California Polytechnic State University – San Luis Obispo with a concentration in accounting. He began his career as an internal revenue agent with the IRS in the San Jose, CA district serving in both San Jose and San Luis Obispo, CA.

Sandy

[Gretel]

Yes, it is disturbing. Fortunately, QB 2012 now offers to extract just one year as a new file, with or without beginning balances. I don't know if this file also allows for deleting of customer list and other non tax information stored in the QB file.

[taxmandan]

I hope such classes will be forthcoming around the country. This is an issue we all need guidance on to protect our clients best interests.

[Nashville]

QuikBooks

Just one more good reason not to recommend QuikBooks for our clients...

[Questionguy101]

So does that mean all business taxpayers are required to have a Quickbooks data file ready if being asked for? What about if someone does not use Quickbooks or does not even use a computer software for the bookkeeping?

[ChEAr$]

So does that mean all business taxpayers are required to have a Quickbooks data file ready if being asked for? What about if someone does not use Quickbooks or does not even use a computer software for the bookkeeping?

You're stealing my thunder. I can just see an IRS demanding the QB file for year in audit and my refusing. No NO NO!.. So agent says subpoena coming. I say so what?
That makes em mad, but at the right time I will inform him there IS no such file, since client, rather me since I do the books, doesn't use QB.
daydreamin again.

[Gretel]

I don't think it is just QB IRS can request. As far as I know they can request any electronic file. QB, of course, is an easy catch. QB might be the only one that is used to a big extend for management purposes and not just for bookkeeping, which exposes the client a great deal.

[Questionguy101]

I don't think it is just QB IRS can request. As far as I know they can request any electronic file. QB, of course, is an easy catch. QB might be the only one that is used to a big extend for management purposes and not just for bookkeeping, which exposes the client a great deal.

So, the question is, what about if the taxpayer does not have a computerized bookkeeping system?

I know many small business owners get their gross income figure from the cash register or job invoices and their expense figures from the canceled checks or receipts.

[ChEAr$]

So, the question is, what about if the taxpayer does not have a computerized bookkeeping system?

.

Heh Heh HEH! That';s the beauty of it. Auditor then has to do it the old FASHIOnED
way: by hand. Client brings his records to my office. I provide IRS auditor the conference room and the records along with journals, ledgers, trial balances etc. Now I DO furnish auditor two cups of coffee per day, although I think there was one time when they were even prohibited from accepting a free cup from us. (anybody remember that?)

And if they want copies of documents to take with them, they (IRS) furnishes the copy paper.