The past two weeks have been strange ones for my tax firm. The phone has been ringing non-stop. If you tried to call and had to leave a message, it’s because all the lines have been busy most of the day.
Why? I made the offer to review anyone’s tax return for free to see what type of tax savings we could get. And, at the same time, it looks like the IRS is through with their Real Estate Professional test case in California. Their auditors are trained and armed with a new audit manual and they are calling people into audit right and left. I have no idea how many people are actually getting notices right now (it takes about 6 months for the IRS to post those numbers), but based on the calls and emails we’re getting it’s a lot.
Some of the stories I’ve heard are pretty sad. One gentleman told how his tax attorney made a bungle of the audit and he paid his lawyer $10K (to do a bad job) and now owes tens of thousands in back taxes, penalties and interest. Now he’s worse than broke and is looking for the “magic pill” to get him out of the IRS audit problem. The issue is that there are many different issues. It’s not just getting some of your hours disallowed. The problem could be that you don’t have an operating agreement, or that it says the wrong thing, or that you have property in a Limited Partnership or that you confused Real Estate Professional status with Material Participation or any one of a dozen things. It’s a bigger problem and issue than most people realize. If you are looking at an audit, be forearmed. Once you have your first conversation with the auditor it is too late. Do NOT wait.
That’s my rant for the weekend. So how do you get your CPA to give you the best work he or she has?
1: Make sure they are the best for you. Just because your neighbor recommended them, they may or may not be a good CPA for what you need. For example, if you’re a real estate investor and especially ifyou’ve gotten slammed with the Real Estate Professional audit and you have NOT yet talked to the auditor, there’s a good chance we might be your best choice. We also have over 20 years combined experience with working with eBusinesses. (Pretty amazing since the Internet hasn’t been around that long. Remember I said “combined.”) We can find you merchant accounts and show you the fine print that might cause you to pay $1400 EXTRA in merchant fees or, without notice, get your account swept. We have resources for outsourcing websites. And, I personally have over 25 years of experience in identifying those qualities you have that could make you a fortune and then setting up long-term strategies to move you into the 15% or less tax world that the rich play in.
2: Ask a “How can I…” question and then sit back and listen. If you want to learn from your advisor and you know your advisor has the experience you need, then you want to be able to listen to them, a lot. If something doesn’t work for you, talk about it then. Be upfront and clear with all of your communication. You don’t want to hide things from your advisors.
3: Keep your CPA up-to-date on what is going on. That’s why I like our new tax service plans that allow you UNLIMITED consultation throughout the year. I want to be able to analyze deals with you before you commit your hard-earned money into them. And I want you to know you can contact me anytime without worrying about stupid little bills. It’s a fixed fee every month. And yes, I know that I could lose my shirt on that deal. But that’s okay. I know that together we’re a better team and that when you’ve doubled or tripled or more your income in just a few years, that you’ll refer me to all your friends.
And remember you can get a free tax review of your tax returns simply by calling Richard at 888.592.4769 or emailing him at CPA@TaxLoopholes.com. How much can I save you? Find out for free.