Audits on Police deductions.

[tacks]

Well said

Also, there really needs to be more of this from the IRS. Many of us lose business to the guy across town because we won't take phony deductions and he will. This is where the real IRS enforcement money needs to be spent...

Well said, i strongly agree. From what i've the irs takes far too long to catch up to these shady preparers (if they do at all). By the time the QP, 'questionable preparer,' is caught...

1) he's already put many many taxpayers/clients at risk -- 'pushed them under a bus,' so to speak (and some of them absolutely are innocent!)

2) he's already produced tons of bigger refunds for clients using BS deductions without getting anyone in trouble. He's already been flying under the radar for far too long. Thus the layman concludes that he's more competent and more knowledgeable than we are.

I understand that the irs has been understaffed for some time. And that it's often more difficult to nail the shady preparer than it is to nail the poor schmuck who has got the BS deduction on his 1040.

(this is, of course, true moreso with low income clients whom irs agents view as having lesser 'audit potential.')


Sorry for the rant.

[tacks]

Excellent thread, thanks to all of those who contributed.

The OP indicated that the local police new he was taking a risk on their behalf. Sounds like they need to go to jail as well?

This brings up a good question which I've often wondered about. Did the taxpayer/client actually know of the preparers wrongdoing? (knowledge and intent) Or do they honestly believe that the other preparer is simply better?

I'm thinking that several of those police officers probably wouldn't really know if their own 2106 forms were prepared correctly or not. They might have thought:

1 this other guy gets bigger refunds for people

2 none of this other guy's clients got audited (not yet anyway)

3 this other guy is so confident in his ability he offers a 'money back guarantee' (i'll
pay half the tax if you're audited)

It seems as though some of them might have honestly thought that this guy was simply a better preparer.

(granted people have accused me of being naive. and on occaisions they've been right)

[geekgirldany]

http://www.thetaxbook.com/forums/showthread.php?t=1200&highlight=FIREFIGHTER+MEALS

Above is a thread on it. The firefighters here told me they took their meals from home. They wanted a per deim. So in my case it did not work. If it is an organized mess required by the employer that they contribute to then yes it is deductible re the thread above.

[OtisMozzetti]

Let's think about those meals of the firefighters

I had some firefighters that left me because I would not deduct their haircuts, meals, and gym memberships.
..

Let's think a little more about those meals of the firefighters. I frequently see fire engines pull up (sirens turned off) to the local grocery stores and some of the firefighters go in to buy a sack of groceries. So, if the local city or fire district requires the firefighters to eat their meals at the firehouse, ready to depart if necessary to a fire or other call for firefighter service, wouldn't the cost of those meals be a nontaxable employee benefit since it is very clearly for the convenience of the employer?

I am saying that if the city or the fire district reimburses whomever pays for the groceries, and those groceries are cooked up at the firehouse for the convenience of the employer, might not that be perfectly legitimate? I am really not sure about this...; I am just wondering...

Incidentally, at the place where I prepare tax returns, we essentially have to eat all of our "meals" in the back room of our office, in order that we can jump into action at any time when clients may walk in, or phone in, seeking our services. Again, I am just wondering...

EA in California

[OtisMozzetti]

penalties on the police

I would like to know that the police taxpayers are getting hit with penalties and interest, aside from the penalties on the preparer.

When that sort of penalties get assessed, it makes my argument that I can save clients money by avoiding the risk of penalties a more persuasive argument.

[geekgirldany]

I had some firefighters that left me because I would not deduct their haircuts, meals, and gym memberships. They stayed with me for three years and I continued to argue each year with them. One told me that "so n so" said it was deductible. I told him that he is welcomed to get a second opinion somewhere else. Well the next year none of the firefighters came back and haven't been back. These are local guys.

My brother is a firefighter. I was talking to him about it and he said they just did not understand about the limitations. He said they believe they are getting back a big refund by claiming those deductions when it may only be a few dollars. He told me to tell them it was deductible and that most of them would always fall below the limitation so I had nothing to worry about. I told him I wasn't going to do that because one day they might actually be able to deduct it and go over the limitation.

I still have a couple of firefighters and police that don't balk when I say something is not deductible.

[Snaggletooth]

BitterSweet

dmj4 - good to hear from you - we've missed you on the board.

This is almost too good to be true from my perspective. I have received two tickets in your town (where my son lives) from these local police. One of them I don't even think I was speeding, and the other one was an obvious revenue trap. Occurred on that big downhill east of town on Hwy 70 going down to the old drive-in theatre. Hard to slow down there, if you're moving at all you are very apt to exceed their 35 m.p.h. limit.

Also, there really needs to be more of this from the IRS. Many of us lose business to the guy across town because we won't take phony deductions and he will. This is where the real IRS enforcement money needs to be spent -- not in petty preparer penalties in cases where an EIC recipient couldn't have lived with his kids and no one really knows.

Glad to hear it - for more reasons than one...

[taxxcpa]

Police taxes

I had a police officer who rented an apartment in the city that employed him, but lived elsewhere. He wanted to deduct the rent since it was a requirement that he have a local address in order to hold his rank as Captain. I looked into it and found that it was not allowable, and when I told him he did not argue about it and did not take the deduction.

I suspected that he was not getting along with his wife and later they were divorced. His wife told me "buit we are still the best of friends."

[JohnH]

I imagine any police officer knows how to avoid being tagged with criminal intent. Absent that element, it's extremely unlikely they'd ever get convicted of any kind of fraud. But I agree - surely most of them knew something was just not right about the whole situation.

[Zee]

The OP indicated that the local police new he was taking a risk on their behalf. Sounds like they need to go to jail as well?

Good point. If the police we're aware that the deductions would be disallowed under audit, they're also guilty of tax fraud aren't they?

[MLINDER42]

Police officers

Happened in my area a couple of years ago.I picked up two new clients.Never heard what became of preparer over 200 police officers where audited.Also happened to an Hrb preparer about five years ago he went to jail policemen paid large amounts back.

[dsi]

The OP indicated that the local police new he was taking a risk on their behalf. Sounds like they need to go to jail as well?

[tacks]

Yeah, having a few beers at the local bar might not be a wise option for him.

[JohnH]

That preparer should consider moving out of town, or else make sure he never gets caught speeding or breaking the law in any manner. He might find himself on the receiving end of a little "jailhouse justice" if the local police get their hands on him after their audits are finished.

[tacks]

Good story, dmj4. It's nice to hear of shady preparers getting caught.