Hi, I heard once you are a home owning adult, you git yourself an accountant. Why?

[kitkat22]

Sigh, I am at a tax bracket/income where I have to play the games with the IRS to get back what I deserve. I use an accountant because I don't want to think about it and every time I have used tax software and compared to the CPA, the CPA always finds deductions I couldn't. In the end, he has always saved me more money than his cost.

I have an IRA, 401k, 403b, various investment accounts and a house. I also run a business as a locums and run into all the deductions and mileage associated with that.

I figure at this bracket and self-employment status the IRS is paying more attention because I would tend to be lower hanging fruit if something doesn't look right. I would rather not have to go through the pain of an audit, thank you very much. Thus a CPA and $300 a year

 

[Spacehead]

Sure - yeah, so I guess the way I should have framed it better is - if in the future you move jobs, etc... and the new one has a 401k then it's something you can potentially look into. I'm also in the world of constantly having new employers heh - I'm in my early 30's and have had four 401k accounts over the years.

But man... your employer doesn't offer anything related to retirement?

OK, yeah, maybe if i go work somewhere else that might be an option.
Yeah, no retirement offering at work. Like i said they did away with the 401K in 2008 & won't be getting another one. I talked to my boss about this a couple of years ago & he said if the offer one they have to have some sort of match. As far as i know i think he's lying. I didn't find anything that says an employer has to offer a match.

 

[dank69]

Sigh, I am at a tax bracket/income where I have to play the games with the IRS to get back what I deserve. I use an accountant because I don't want to think about it and every time I have used tax software and compared to the CPA, the CPA always finds deductions I couldn't. In the end, he has always saved me more money than his cost.

I have an IRA, 401k, 403b, various investment accounts and a house. I also run a business as a locums and run into all the deductions and mileage associated with that.

I figure at this bracket and self-employment status the IRS is paying more attention because I would tend to be lower hanging fruit if something doesn't look right. I would rather not have to go through the pain of an audit, thank you very much. Thus a CPA and $300 a year

Do you know why? Because they know they can often deduct a bunch of bullshit that the IRS will never pursue. Especially since the IRS has been gutted over the past 20-30 years to enable exactly this. The rule is "if you aren't sure, deduct it anyway and make them come after you for it."

 

[kitkat22]

Do you know why? Because they know they can often deduct a bunch of bullshit that the IRS will never pursue. Especially since the IRS has been gutted over the past 20-30 years to enable exactly this. The rule is "if you aren't sure, deduct it anyway and make them come after you for it."

I didn't know why. That makes sense but at the same time I don't necessarily want to add the burden back on myself. The IRS is welcome to review my returns, I have nothing to hide and can review them with the CPA.

It really bothers me the extent of filing taxes in the US. A lot of the time you have to have a degree to file taxes. It really is a pain in the butt.

 

[dank69]

I didn't know why. That makes sense but at the same time I don't necessarily want to add the burden back on myself. The IRS is welcome to review my returns, I have nothing to hide and can review them with the CPA.

It really bothers me the extent of filing taxes in the US. A lot of the time you have to have a degree to file taxes. It really is a pain in the butt.

I say fuck them. If they know what I owe anyway, why do they make me figure it out? That's exactly what I'll tell them too if they ever call me out. Don't like what I say I owe you? Send me a bill, assholes.

 

[ISAslot]

I say fuck them. If they know what I owe anyway, why do they make me figure it out? That's exactly what I'll tell them too if they ever call me out. Don't like what I say I owe you? Send me a bill, assholes.

The tax prep lobbyists ain't gonna let that happen.

 

[dank69]

The tax prep lobbyists ain't gonna let that happen.

Yeah they tried (are still trying?) to kill free fillable forms.

 

[s0me0nesmind1]

Do you know why? Because they know they can often deduct a bunch of bullshit that the IRS will never pursue. Especially since the IRS has been gutted over the past 20-30 years to enable exactly this. The rule is "if you aren't sure, deduct it anyway and make them come after you for it."

If only there was an executive and legislative branch of government that could all be the same and pass something to fix that.....

Also not sure if it's completed reversed in the last 3 years, but it's been a pretty well known fact that your chances/probability of an audit is a direct correlation with higher income. The more income, the higher the chances you have of an audit.

 

[dank69]

If only there was an executive and legislative branch of government that could all be the same and pass something to fix that.....

Also not sure if it's completed reversed in the last 3 years, but it's been a pretty well known fact that your chances/probability of an audit is a direct correlation with higher income. The more income, the higher the chances you have of an audit.

I'm sure that's an ROI calculation for them. Why waste resources auditing someone for peanuts?

 

[s0me0nesmind1]

I'm sure that's an ROI calculation for them. Why waste resources auditing someone for peanuts?

There is that, for sure.

They still go after low-income, but it's not often - and 98% of the time in the small cases where they DO go after them, it's not really an audit - it's just a matter of...."dude, we got a copy of this W2/1099 and you didn't report that income dipshit."

 

[Torn Mind]

I'm sure that's an ROI calculation for them. Why waste resources auditing someone for peanuts?

There is that, for sure.

They still go after low-income, but it's not often - and 98% of the time in the small cases where they DO go after them, it's not really an audit - it's just a matter of...."dude, we got a copy of this W2/1099 and you didn't report that income dipshit."

They go after easy income. The businesses that don't have the big guns but are raking in enough reliable bank to be easy money.

IIRC, bbhaag here had a small businesses and he started a thread, mentioning they kept insisting his paperwork off until he finally hired a CPA.

The IRS has been quietly confiscating millions from small business owners

Between 2012 and 2014, the IRS seized over $17 million from hundreds of small business owners like the Hirschs — whose only “crime” was making frequent cash deposits and withdrawals of …

www.wreg.com

 

[bbhaag]

They go after easy income. The businesses that don't have the big guns but are raking in enough reliable bank to be easy money.

IIRC, bbhaag here had a small businesses and he started a thread, mentioning they kept insisting his paperwork off until he finally hired a CPA.

The IRS has been quietly confiscating millions from small business owners

Between 2012 and 2014, the IRS seized over $17 million from hundreds of small business owners like the Hirschs — whose only “crime” was making frequent cash deposits and withdrawals of …

www.wreg.com

Yeah that was a fucking nightmare and a looming threat over our business for years. We are fortunate enough to have a competent CPA who stuck with it and eventually resolved the issue. If it wasn't for him and his team of associates I have no doubt we would have just settled the matter knowing full well we were in the right the whole time.

IMO it's not just small business' either that the IRS picks on. They go after anyone who thinks they don't have the resources to fight them. These are usually low to medium income earners who end up just paying the "fines and fees" because they don't have the money or time to stick it out and fight for what they know is right and it's just easier to pay and get it put behind them.

 

[s0me0nesmind1]

They go after easy income. The businesses that don't have the big guns but are raking in enough reliable bank to be easy money.

IIRC, bbhaag here had a small businesses and he started a thread, mentioning they kept insisting his paperwork off until he finally hired a CPA.

The IRS has been quietly confiscating millions from small business owners

Between 2012 and 2014, the IRS seized over $17 million from hundreds of small business owners like the Hirschs — whose only “crime” was making frequent cash deposits and withdrawals of …

www.wreg.com

I work in a tax related field - so like I said I can assure you that the majority of the time the only time they go after low income folks is when it's OBVIOUS and very easily provable, such as when an employer reports income (e.g. with a W2 or 1099) that they go after someone... Mostly because it's pretty straightforward. They received notice that you received income. You didn't report that income + pay taxes on it - thus you're an easy target.

The challenges come with deductions/credits with higher income individuals. Like I said, the higher the income though, the higher probability of an audit.

Regardless though, they also prey on individuals/small business that are most probable to easily fold. No doubt about that either.

 

[JEDIYoda]

I have a friend and I kid you not -- the IRS went after -- 75 cents!! As in 3 quarters......thast they said was owed them....