Problem

The IRS audited the client. The IRS Auditor proposed a large adjustment to the tax return, which would generate a $60,000 tax bill. The client’s previous tax preparation firm told the client to write a check. The client hired us to complete the IRS Audit.

Relief Steps

1. We reviewed the tax return and found a significant error that the previous firm had made.
2. We researched other tax positions to resolve this case.
3. We put together a reasonable position. The IRS Auditor agreed with our position. We were able to reduce the tax bill from $60,000 to $25,000.

Results
If this client had not sought a second opinion, the client would have paid $35,000 in taxes that were not owed.

Problem

The IRS audited the client. The IRS Auditor proposed a large adjustment to the tax return, which would generate a $60,000 tax bill. The client’s previous tax preparation firm told the client to write a check. The client hired us to complete the IRS Audit.

Relief Steps

1. We reviewed the tax return and found a significant error that the previous firm had made.
2. We researched other tax positions to resolve this case.
3. We put together a reasonable position. The IRS Auditor agreed with our position. We were able to reduce the tax bill from $60,000 to $25,000.

Results
If this client had not sought a second opinion, the client would have paid $35,000 in taxes that were not owed.

Problem
The client is a realtor and received a Form 1099 income every year. Being self-employed meant staying on top of the taxes throughout the year. The client received a large tax bill at the end of the year because the client was not educated on estimated tax payments, and the client’s tax preparer did not provide adequate guidance on paying tax estimates.

Relief Steps

1. We thoroughly reviewed the previous year’s tax return tax returns with the client and explained how the tax return was prepared and how the taxes owed was determined.
2. We prepared the client’s tax return for the current year and based on this information, we developed a simple calculation to assist the client in making the correct estimated tax payments for next year.
3. We reviewed the client’s business structure for possible tax savings ideas.
4. We assisted the client throughout the year on record-keeping and business expenses.

Results
The client informed us that more was learned in our initial review than in all the years of working with the previous tax preparer. It was a relief to the client to have a trusted adviser on taxes and business accounting.

Problem
QuickBooks was a mess. The client attempted to get a loan but could not because the financial statements made no sense. The client had a profitable business, but the books did not reflect success. The client worked with multiple CPAs in the past, and none helped the situation.

Relief Steps

1. We were granted an accountant’s access to the business QuickBooks file.
2. We gathered business tax returns starting with the first year the business began to operate. We then thoroughly analyzed the year-to-year QuickBooks entries and business tax returns.
3. The cost to do a complete overhaul of the books would have been tens of thousands of dollars. To save the client a significant amount in accounting fees, we adjusted the books using educated estimations using all available data.

Results
After two years of assisting the client on tax and accounting, the client’s QuickBooks problems were cleaned up. The client was able to get additional financing. We continue to work with the client as a tax advisor and yearly tax preparer. The client said they wished they had met us years ago because they would never have gotten into this mess.