Marge Posted April 13, 2007 Report Share Posted April 13, 2007 :angry: Have a small restaurant that I did the quarterly sales tax for in 2006. Two weeks or so ago this person brought in their reciepts and crap in a bag. Had my girls total up reciepts and go thru the carbon copies furnished us of the checks they wrote. Gross sales reported on Sales tax returns little over $ 35,000.00 Expenses added up to about $ 85,000.00 Called them told them that if they wanted me to continue working for them they must bring me all the bank statements. Deposits add up to $ 84,000.00 So what do you suppose they thought? That I would not notice the difference here? No loans that I can see... Ok so am going to set up appt with them on Monday and tell them what I know and ask them what they want me to do. The correct tax return or take it elsewhere... IF they tell me to report all the income then I am going to also amend their sales tax returns. Is this the proper way to handle this or not???? Darn people anyway.... Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 13, 2007 Report Share Posted April 13, 2007 Sounds pretty bad, and I think you're correct to check it out. If they are cheating, there's no telling how much cash never made it to the bank, either. Let us know what you find out. I really, really hate it when I have to go through the "receipts and crap" for the ones I suspect of cheating. I'm working on one right now, and he's gonna whine about having to pay and ask me if I was "very careful" and "are you sure you didn't miss anything" and "I can't believe we made that much money..." Quote Link to comment Share on other sites More sharing options...
Mike Posted April 14, 2007 Report Share Posted April 14, 2007 When I come across this situation, I always seem to jump to the worst conclusion first. Then as I uncover the facts, I am better able to determine the client's intention. Most clients, I find, dont' really want to cheat, they just don't understand the connection of everything and the ramifications of it all. As there adviser, I inform them and from that conversaton I assess whether they are going to be a client going forward or not. As for your situation, I think your stance is proper until you find out the facts and if it turns out that the income is under reported, corrections or walking papers are in order. Quote Link to comment Share on other sites More sharing options...
Marge Posted April 14, 2007 Author Report Share Posted April 14, 2007 Thank you both for your thoughts. I kind of had my suspicions when they brought me their last two quarters of income. I even questioned them then and they said that boy business was really bad lately... Well according to the bank statements, business was steady all year If they do not want to fix things now I will tell them to take it elsewhere, the money I will lose for the writeup etc is a small price to pay for not getting myself in trouble with the IRS and the State of IA.. Quote Link to comment Share on other sites More sharing options...
Marge Posted April 14, 2007 Author Report Share Posted April 14, 2007 Just a little more info on the above crap. I added up all the cash paid outs and his income is now up to over 110,000.00. What a crook. I know this guy was trying to pull a fast one with me because of his attitude. He kept telling me how bad business has been when in fact it was better then last year. He had a fit last year because he owed taxes. So he just figured he would'nt report all his income this year so he would not have to pay. Marge Quote Link to comment Share on other sites More sharing options...
RJM Posted April 14, 2007 Report Share Posted April 14, 2007 Marge, will you fire the client? I think I would, without knowing all the details. I have learned that when a client lies to me there is usually trouble down the road. Quote Link to comment Share on other sites More sharing options...
Marge Posted April 14, 2007 Author Report Share Posted April 14, 2007 Marge, will you fire the client? I think I would, without knowing all the details. I have learned that when a client lies to me there is usually trouble down the road. yup sure will just as soon as he pays me for what he owes me for my acctg fees... lol Would not be the first one I did that too.. I sometimes think that these guys must think that we are all a bunch of dummy's. Marge Quote Link to comment Share on other sites More sharing options...
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