Investigating tax returns

[nycCPA]

I have a friend, not a client, who is going to court on a child support hearing. He files a Schedule C and also happens to have recently gone through an immigration/Green Card thing. Through the incorrect advice of his lawyer, we overstated the income and didn't tak as many Sch C deductions as he could have because the lawyer said it was better to show more income.

The problem is, these were legitimate deductions, and now the child support hearing is going to be based on his tax return, which doesn't reflect the real picture. I do not sign the return, so I have no skin in the game but I can obviously make him a different return to reflect these deductions.

What can the judge or his ex-wife do to verify this tax return? Is this a likely scenario? Obviously, we all know, anyone can create a tax return. He is just trying to assess the risk here. Thoughts please.

Thanks

[Jiggers]

He can't have his cake and eat it too!

I have a friend, not a client, who is going to court on a child support hearing. He files a Schedule C and also happens to have recently gone through an immigration/Green Card thing. Through the incorrect advice of his lawyer, we overstated the income and didn't tak as many Sch C deductions as he could have because the lawyer said it was better to show more income.

The problem is, these were legitimate deductions, and now the child support hearing is going to be based on his tax return, which doesn't reflect the real picture. I do not sign the return, so I have no skin in the game but I can obviously make him a different return to reflect these deductions.

What can the judge or his ex-wife do to verify this tax return? Is this a likely scenario? Obviously, we all know, anyone can create a tax return. He is just trying to assess the risk here. Thoughts please.

Thanks

The judge can order him to produce a copy of the actual tax return, and can also get a copy from the IRS.

You say that you didn't sign the return. Did you get paid for doing it, or any part of it?

I would ask the attorney that gave him "incorrect advice" as to what his course of action should be!

[Zee]

You indicated this person was not a client, yet you indicated "We overstated the income and didn't take as many Sch C deductions as he could have because the lawyer said it was better to show more income." What does the "We" mean?

A CPA should not prepare or sign a return as an income tax preparer if the CPA knows the return is incorrect. IMHO, such actions clearly violate Section 230.

Overstating income, and understating expenses intentionally results in a fraudulent return. It doesn't matter what the secondary purpose might be. What if the return was used for a bank loan?

Frankly, I'm disappointed a CPA would engage in this practice.

I would suggest you correctly prepare an amended return, make sure it's mailed, and insist the client share the correct return with the court and his wife (if it's required). Or, I would separate myself from this client immediately.

[veritas]

Let me see if I understand this

You helped your friend lie to the immigration authorities and the IRS and now you want to help him tell the truth for a divorce?


There must be a quote somewhere for this.

[myerstaxes]

Wow, I do not do that stuff for anyone paid or not...Now that it is done, I would leave that whole mess alone...

[myerstaxes]

Because now, who knows where the truth lies...??

[ED SMITH]

to nyCPA

maybe you didn't sign the return, but you gave advice as licensed professional. It sounds like conspiracy to commit fraud. You might be needing a good lawyer yourself. Now you want to know if the judge or his ex can find out.

You can bet your sweet CPA license they can. It is called a subpeona.

"...anyone can create a return...."

I think your attitude is odious and frankly IMO you shouldn't be in the business or on this board.

[JohnH]

You helped your friend lie to the immigration authorities and the IRS and now you want to help him tell the truth for a divorce?


There must be a quote somewhere for this.

"It is impossible to calculate the moral mischief, if I may so express it, that mental lying has produced in society. When a man has so far corrupted and prostituted the chastity of his mind as to subscribe his professional belief to things he does not believe he has prepared himself for the commission of every other crime." - Thomas Paine

[ChEAr$]

chuckle

Because now, who knows where the truth lies...??

You used the words "truth" and "lies" in the same sentence!

[jimmcg]

"Frankly, I'm disappointed a CPA would engage in this practice."


I have twenty bucks that says this character is not a CPA. Surely he must be putting us on!

[outwest]

Qutoe for veritis...

You helped your friend lie to the immigration authorities and the IRS and now you want to help him tell the truth for a divorce?


There must be a quote somewhere for this.

Oh what a tangled web we weave when first we practice to deceive...

[BHoffman]

nycCPA is a jokester

I'm with jimmcg. I think this is a bored guy somewhere who thinks it's funny to post ridiculous crap.

Any ridiculous crap I post is sincere.

[JohnH]

Sincerity is the key to success - once you can fake sincerity, you've got it made.

[BHoffman]

Living on the edge

"It is dangerous to be sincere unless you are also stupid. "
~George Bernard Shaw, Man and Superman (1903) "Maxims for Revolutionists"

[Jesse]

The problem is, these were legitimate deductions, and now the child support hearing is going to be based on his tax return, which doesn't reflect the real picture. I do not sign the return, so I have no skin in the game but I can obviously make him a different return to reflect these deductions.

Thanks

NO you cannot just "make him a different return", but you could amend to file a correct return.

What can the judge or his ex-wife do to verify this tax return? Is this a likely scenario? Obviously, we all know, anyone can create a tax return. He is just trying to assess the risk here. Thoughts please.

Thanks

Get a bonafide copy from the IRS.

In a prior post you mention just going out on your own so I'll take this as a ligite post of an inexperienced newbie. The real world is so much different than the textbook world and you should never ever let a client (or friend) dictate what the end result should be. You follow the rules and regs to the best of your knowledge or just don't do it!