late amendment - I feel so bad

[schirallicpa]

Client brought in 2023 for me to take a look at.  He has an S corp (100%) and personal.  I was in shock at what the balance sheet looked like and asked him about the huge amount of cash it showed and large RE balance vs what he had on his bank statement and what he told me he actually had going on.  Wow.  The previous bookkeeper liked the "undeposited funds" account in QB along with the "opening equity balance" account.  Tax preparer lumped undep funds into cash and credited retained earnings on the Sch L. Good grief it is a nightmare.  So he brought in 22 and 21.  I went thru 21 and he would have about 21K of savings on his personal return.  about 2 months too late.  

[Medlin Software, Dennis]

That amount would have me (if were the TP) looking for relief from the previous "expert".

[Lee B]

It's always interesting, how many clients think they are saving money by avoiding Accountants and Attorneys and their exorbitant fees.

[Medlin Software, Dennis]

Even when using proper representation, the TP should still have basic knowledge to spot something this and/or hiring out for at least a cursory review. I mean really, a S Corp which does not zero out each year? I am not discounting the allowed practice of things like holding checks, for even months, to defer income, but to what sounds like cash checks, but claim then as undeposited/unrealized?  Maybe the bookkeeper is also a sovereign citizen :).

As I sit in a home where I either DIY or pay licensed insured for repairs/maintenance, and next door, they are finishing up unpermitted window and roof replacement with unlicensed employees on a slow work day (and run an unlicensed, unpermitted, and not allowed cash business from their home).

[schirallicpa]

And the Taxpayer admits he should have looked at these returns.  Well - the preparer didn't go over them with you?  No questions?  No getting to know the business better before slapping down your bill?  At least he will get some of 22 back and 23 promises to be a good fix as well.  My fees will be considerably more than his previous guy.  

 

[Abby Normal]

21 would be filed in 22, and 3 years from 22 is 25, no?

[jklcpa]

Yep, Abby is correct. The open years that can be amended are 2021 through 2023.

Maybe the poster was thinking about the years that can be e-filed, which are the current year and previous two years, which means that the amended 2021 S corp and personal returns would have to be paper-filed. The amendments for 2022 and 2023 can be e-filed.