Quick IRS audit question

There's nothing wrong with making sure you understand the situation before talking to a professional. It helps make sure you aren't opening the door to a whole host of other issues.

And yes, dealing with an accountant can be hit or miss. Just like a lawyer. Go in knowing what to talk about and things will go more smoothly. Telling them "fix it" can result in years of amended returns and a $10,000 bill pretty quickly.

Now a slightly different question. These books are on an old version of Quicken. It's time for me to update my bookkeeping software so what are some programs that will give the tax guys the ability to accept on a thumbdrive?

Quickbooks?

I definitely don't need a Peachtree. You'd be amazed at how simple our bookkeeping needs are. No inventory, not a lot of costs, nothing complicated at all.

Quicken is not set up for corporate tax filings.

Quickbooks will suffice.

I realize you are trying to understand the issues. I think that is a good approach. But please understand, every time you say something like you are "self employed" (you are not) or "the books are in Quicken" (not if its a corporation) reinforces for me that you are missing a grasp of some of the basic concepts.

If you hand an accountant (or an IRS auditor) a printout from Quicken (which is NOT designed for corporate filings), YOU are creating a situation that is confusing, and therefore ending up with confused responses.

And NO, NO, NO, you can't "play games" on Turbo Tax to see what happens.

You probably have a problem that I fall subject to at times. You are smart. Therefore, you try to figure stuff out that you don't understand (I do it all the time).

The problem is, that you hand a set of books to an accountant, and they work on the assumption that the books have been prepared utilizing recognized accounting methods. If you've been "playing with TT", you are probably giving them info that is not correct, and they therefore make mistakes based on what you give them. Then, you try to correct them with Turbo Tax (again, without recognized accounting methods).

One of the hardest things I am learning is how to keep my hands off stuff I need professionals for. Accounting is one of those things. Let the accountant do it.

SVreX wrote: And NO, NO, NO, you can't "play games" on Turbo Tax to see what happens.

Actually you can. And by playing games I'm not talking about cooking the books, I'm talking about seeing better ways to do things in the future. I found a couple of Fringe Benefits that I'll change in my compensation package.

It has helped me understand a lot of what effects certain things have. TT also gives you all kinds of hints that also help you understand the importance of certain items and help you do them properly.

The results I saw made a lot of what I heard more understandable.

And yes SVreX I AM very smart. I'm glad you recognized my brilliance (8)

But other than algebra and some electronic stuff, I don't think there's anything I can't understand if given a little information.

Algebra and electronics are waay easier than the tax code.

I wasn't suggesting playing games with TT wasn't physically possible. I was suggesting that doing so was a really bad idea.

I would bet a lot of money that you have done the same thing I did. Years worth of doing my own bookkeeping because I am "smart" has left thousands of quirks, twists, and work-arounds. I can do a printout that appears to be communicating solid info to an accountant, but it isn't. There are far too many entries which were made to get the results I was looking for while "trying to understand". They were not made in keeping with good accounting practices, and they communicate incorrect info.

I abandoned 10 years worth of bookkeeping and started over.

I am not trying to criticize you. I am trying to help. CPA's take a LOT of time to be trained in what they do, and the tax code changes frequently. Algebra is a heck of a lot easier.

But I see you are dead set on this...

SVreX wrote: And NO, NO, NO, you can't "play games" on Turbo Tax to see what happens.

Sure you can. Save the record under a different title, and alter the scenario. I do it every year. From as simple as comparing joint vs separate returns, to evaluating the cost benefits of various book keeping methods.

It's a very useful function.

foxtrapper wrote:

SVreX wrote: And NO, NO, NO, you can't "play games" on Turbo Tax to see what happens.

Sure you can. Save the record under a different title, and alter the scenario. I do it every year. From as simple as comparing joint vs separate returns, to evaluating the cost benefits of various book keeping methods. It's a very useful function.

I'm pretty sure that's not how it was used.

Tax code this year is hosed, no one is sure yet what is happening, AFAIK. Find an accountant that has a LARGE footprint. These people usually have a legal department and research minions.

One of the best things about playing with TT is that I now have a pad full of questions to ask. Things I'd have never known to ask about if I hadn't done it.

carguy123 wrote: But other than algebra and some electronic stuff, I don't think there's anything I can't understand if given a little information.

it might help to realize that algebra ( at least lower level algebra) is just arithmetic spelled differently

I love when I am using turbotax and it sugests I do something illegal. Usually this takes the form of double dipping deductions but a few times its tried to get me to do things I straight don't qualify for.

I also never know what to do when I am talking to other people about taxes and they tell about some great deduction they got and I look into it in case I can get it and find out they did something illegal. That's nice too.

Honestly I'm with svrex on this one. Go to an accountant and open you books to them. Don't steer them let them steer you.