Can You Trust Your Accountant?
- They openly discuss other clients with you
- They offer to “fudge” numbers to save you money or get you a refund
- They don’t answer your questions directly or to your satisfaction
- They offer to sign documents or execute agreements on your behalf
Most times when I represent a client in front of the government with a big tax liability, I ask “why did put these clearly fraudulent deductions on your tax returns?” The number one response is “my tax accountant put those deductions on my tax returns.” As a taxpayer, once you sign a tax return, you are telling the government that everything is accurate, true and that you understand everything that was included on the tax returns. Using the “it was my accountant” excuse just about almost never works when negotiating with the government. As adults, you must take some type of responsibility for your actions. Trust in any relationship shouldn’t be given so easily. Ask yourself, “can you trust your accountant?” I have seen hundreds of fraudulent tax returns. In most cases, it was the accountant that intentionally included fraudulent deductions without the taxpayer’s knowledge. However, the taxpayer was so happy to receive refunds that they didn’t question the accountant. It is very important to notice the signs of an untrustworthy tax accountant before the IRS starts knocking on your door. I going to discuss the four most common signs to look out for.
I always like to have small talk with my clients. Sometimes, I even tell them about some tax war stories regarding my battles with the IRS. I just tell my clients the general background of the story. I don’t share any confidential information regarding the case. Be wary of tax accountants that openly discuss other clients with you. For example, your tax accountant tells you that “my client Nancy Smith has been deducting fraudulently donations for decades.” You may just think that only you have this great confidential relationship with the accountant however this is a big mistake. If you tax accountant openly discusses other clients with you, I can guarantee that he or she is discussing your tax issues with other clients. Did you know that other people can anonymously report you or your accountant to the IRS and possibly collect a reward for collection of penalties? You got to protect your neck.
As a tax accountant who is a sole proprietor, I have learned that there are many people that seek out fraudulent tax accountants. When a potential client tells me that “they need a certain amount of refund,” this is usually code words for “I need you to make up some deductions.” In my case, you automatically don’t become my client. However, for some other accountants, they will gladly accept them because their business grows once word gets around that you give clients tax refunds by any means necessary. Fraudulent clients love referring other fraudulent clients. What if you are the one good client in a sea of fraudulent clients at your accountant’s office? Well, if the IRS notices that your tax accountant’s client usually receive abnormal refunds, the government can audit all of your tax accountant’s clients including you. Believe me, this is an unwelcome headache. Do yourself a favor and stay clear from accountants that offer “fudge” numbers to save you money or get you a refund.
Have you ever dealt with an accountant that always seems to be in a rush? It is almost like every question you ask is a complete annoyance to your accountant. Always remember that you have the right to ask as many questions as you want. In some cases, you just might have to pay for the time.
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