OT: CPA

[TemekuT]

Allan, you’re absolutely correct about “playing ball” on the audit side. Remember, the CPA profession licensing is based on the attest function, not on tax prep, and the revenue stream derived from audits and consulting is huge, especially since the inception of Sarbanes-Oxley.

I lost my innocence as a first year staffer for one of the Big 8 when it came time to trade off issues at the final audit meeting, in which I was not included. My audit senior explained to me what was transpiring, the bargaining process, and how this was common.

I submit in any form of big business it is impossible to succeed if you play by the rules because of widespread ethics breaches and corruption, and that this is common at THE TOP LEVEL, not at the worker bee level. What a sad commentary on ethics.

Having said that, I still maintain that almost all CPA tax preparers out there run their small business with integrity and would never compromise their license and livelihood to falsify an individual tax return. I know it happens, but infrequently, because it is just not worth the consequences to the sole proprietor or small partnership.

[TemekuT]

jficquette, that’s an interesting idea about the audit frequency of self-prepared returns. I wonder what the statistics are.

For anyone worried about an audit, I recommend using a tax attorney for return preparation. You have the benefit of attorney-client privilege and the workpapers do not need to be turned over to the IRS. When using a CPA, Enrolled Agent, or Certified Tax Preparer, the workpapers must be turned over to the IRS if requested and all conversations and discussions cannot be kept confidential.

I sometimes think there may be an advantage to using a CPA or an Enrolled Agent who was formerly in the employ of the IRS. Imagine knowing what would likely trigger an audit and also how to deal with the IRS system and mentality!

[TemekuT]

jficquette, that’s an interesting idea about the audit frequency of self-prepared returns. I wonder what the statistics are.

For anyone worried about an audit, I recommend using a tax attorney for return preparation. You have the benefit of attorney-client privilege and the workpapers do not need to be turned over to the IRS. When using a CPA, Enrolled Agent, or Certified Tax Preparer, the workpapers must be turned over to the IRS if requested and all conversations and discussions cannot be kept confidential.

I sometimes think there may be an advantage to using a CPA or an Enrolled Agent who was formerly in the employ of the IRS. Imagine knowing what would likely trigger an audit and also how to deal with the IRS system and mentality!

[TemekuT]

jficquette, that’s an interesting idea about the audit frequency of self-prepared returns. I wonder what the statistics are.

For anyone worried about an audit, I recommend using a tax attorney for return preparation. You have the benefit of attorney-client privilege and the workpapers do not need to be turned over to the IRS. When using a CPA, Enrolled Agent, or Certified Tax Preparer, the workpapers must be turned over to the IRS if requested and all conversations and discussions cannot be kept confidential.

I sometimes think there may be an advantage to using a CPA or an Enrolled Agent who was formerly in the employ of the IRS. Imagine knowing what would likely trigger an audit and also how to deal with the IRS system and mentality!

[TemekuT]

jficquette, that’s an interesting idea about the audit frequency of self-prepared returns. I wonder what the statistics are.

For anyone worried about an audit, I recommend using a tax attorney for return preparation. You have the benefit of attorney-client privilege and the workpapers do not need to be turned over to the IRS. When using a CPA, Enrolled Agent, or Certified Tax Preparer, the workpapers must be turned over to the IRS if requested and all conversations and discussions cannot be kept confidential.

I sometimes think there may be an advantage to using a CPA or an Enrolled Agent who was formerly in the employ of the IRS. Imagine knowing what would likely trigger an audit and also how to deal with the IRS system and mentality!

[TemekuT]

jficquette, that’s an interesting idea about the audit frequency of self-prepared returns. I wonder what the statistics are.

For anyone worried about an audit, I recommend using a tax attorney for return preparation. You have the benefit of attorney-client privilege and the workpapers do not need to be turned over to the IRS. When using a CPA, Enrolled Agent, or Certified Tax Preparer, the workpapers must be turned over to the IRS if requested and all conversations and discussions cannot be kept confidential.

I sometimes think there may be an advantage to using a CPA or an Enrolled Agent who was formerly in the employ of the IRS. Imagine knowing what would likely trigger an audit and also how to deal with the IRS system and mentality!

[Allan from Fallbrook]

TemekuT: When you consider that most of the folks making the “real” money (high end attorneys, CEOs, investment bankers) are compensated largely through performance based objectives, the ethics breaches become more common and widespread. This is not to condone the behavior, simply to explain it.

There was an excellent article in the WSJ following the Enron debacle and the reporter was looking at all the ways in which Enron really dominated parts of the Houston economy and in spite of the oil wealth that was also present. They really spread the money and the influence around. It becomes remarkably easy to forget your ethics in your other pants as you head to work in that environment.

I worked as a CFO for one of the biggest insurance brokers in the world and primarily on the surety side (large market construction) of the business. You want to talk about sleaze and doing “what it takes” to get the bond and get the business? Pardon the crassness, but you get your cherry popped fast and hard, believe me.

I’ve been out of the corporate side and on my own since 1998 and I don’t miss it one bit.

[Allan from Fallbrook]

TemekuT: When you consider that most of the folks making the “real” money (high end attorneys, CEOs, investment bankers) are compensated largely through performance based objectives, the ethics breaches become more common and widespread. This is not to condone the behavior, simply to explain it.

There was an excellent article in the WSJ following the Enron debacle and the reporter was looking at all the ways in which Enron really dominated parts of the Houston economy and in spite of the oil wealth that was also present. They really spread the money and the influence around. It becomes remarkably easy to forget your ethics in your other pants as you head to work in that environment.

I worked as a CFO for one of the biggest insurance brokers in the world and primarily on the surety side (large market construction) of the business. You want to talk about sleaze and doing “what it takes” to get the bond and get the business? Pardon the crassness, but you get your cherry popped fast and hard, believe me.

I’ve been out of the corporate side and on my own since 1998 and I don’t miss it one bit.

[Allan from Fallbrook]

TemekuT: When you consider that most of the folks making the “real” money (high end attorneys, CEOs, investment bankers) are compensated largely through performance based objectives, the ethics breaches become more common and widespread. This is not to condone the behavior, simply to explain it.

There was an excellent article in the WSJ following the Enron debacle and the reporter was looking at all the ways in which Enron really dominated parts of the Houston economy and in spite of the oil wealth that was also present. They really spread the money and the influence around. It becomes remarkably easy to forget your ethics in your other pants as you head to work in that environment.

I worked as a CFO for one of the biggest insurance brokers in the world and primarily on the surety side (large market construction) of the business. You want to talk about sleaze and doing “what it takes” to get the bond and get the business? Pardon the crassness, but you get your cherry popped fast and hard, believe me.

I’ve been out of the corporate side and on my own since 1998 and I don’t miss it one bit.

[Allan from Fallbrook]

TemekuT: When you consider that most of the folks making the “real” money (high end attorneys, CEOs, investment bankers) are compensated largely through performance based objectives, the ethics breaches become more common and widespread. This is not to condone the behavior, simply to explain it.

There was an excellent article in the WSJ following the Enron debacle and the reporter was looking at all the ways in which Enron really dominated parts of the Houston economy and in spite of the oil wealth that was also present. They really spread the money and the influence around. It becomes remarkably easy to forget your ethics in your other pants as you head to work in that environment.

I worked as a CFO for one of the biggest insurance brokers in the world and primarily on the surety side (large market construction) of the business. You want to talk about sleaze and doing “what it takes” to get the bond and get the business? Pardon the crassness, but you get your cherry popped fast and hard, believe me.

I’ve been out of the corporate side and on my own since 1998 and I don’t miss it one bit.

[Allan from Fallbrook]

TemekuT: When you consider that most of the folks making the “real” money (high end attorneys, CEOs, investment bankers) are compensated largely through performance based objectives, the ethics breaches become more common and widespread. This is not to condone the behavior, simply to explain it.

There was an excellent article in the WSJ following the Enron debacle and the reporter was looking at all the ways in which Enron really dominated parts of the Houston economy and in spite of the oil wealth that was also present. They really spread the money and the influence around. It becomes remarkably easy to forget your ethics in your other pants as you head to work in that environment.

I worked as a CFO for one of the biggest insurance brokers in the world and primarily on the surety side (large market construction) of the business. You want to talk about sleaze and doing “what it takes” to get the bond and get the business? Pardon the crassness, but you get your cherry popped fast and hard, believe me.

I’ve been out of the corporate side and on my own since 1998 and I don’t miss it one bit.

[sdduuuude]

There is a distinction between a CPA and an accountant that is not a CPA. A CPA can practice in front of the IRS. An accountant who is not a CPA may not practice in front of the IRS, but that doesn’t mean they aren’t good at preparing taxes, and they are likely less expensive.

I use an accountant who was once a CPA but let his license expire because he never really needed the CPA title.

If I ever get audited and I need someone to represent me, I would have to hire another individual – a CPA – to do so.

[sdduuuude]

There is a distinction between a CPA and an accountant that is not a CPA. A CPA can practice in front of the IRS. An accountant who is not a CPA may not practice in front of the IRS, but that doesn’t mean they aren’t good at preparing taxes, and they are likely less expensive.

I use an accountant who was once a CPA but let his license expire because he never really needed the CPA title.

If I ever get audited and I need someone to represent me, I would have to hire another individual – a CPA – to do so.

[sdduuuude]

There is a distinction between a CPA and an accountant that is not a CPA. A CPA can practice in front of the IRS. An accountant who is not a CPA may not practice in front of the IRS, but that doesn’t mean they aren’t good at preparing taxes, and they are likely less expensive.

I use an accountant who was once a CPA but let his license expire because he never really needed the CPA title.

If I ever get audited and I need someone to represent me, I would have to hire another individual – a CPA – to do so.

[sdduuuude]

There is a distinction between a CPA and an accountant that is not a CPA. A CPA can practice in front of the IRS. An accountant who is not a CPA may not practice in front of the IRS, but that doesn’t mean they aren’t good at preparing taxes, and they are likely less expensive.

I use an accountant who was once a CPA but let his license expire because he never really needed the CPA title.

If I ever get audited and I need someone to represent me, I would have to hire another individual – a CPA – to do so.

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