Customers Referrals:
Joe
"I would not have lost my prior business if I had you as
my accountant."
Shorty
and Carolyn
"It's nice knowing our tax liability and that it was
properly prepared without losing and advantages."
Frank
"Best accountant I ever had."
IRS
Auditor
"Best set of books I have seen."
Result:
Negligible tax liability.
Tom
K.
"I would have been out of business in my first year if it
had not been for you."
A friend referred him.
Situation:
1. First year in business.
2. Accountant prepared taxes and had a large tax liability.
3. The owner of the business knew he did not earn that much money.
4. No inventory.
5. He could not get satisfactory answers from his accountant.
6. Orders taken then purchase of item, sold.
On examining everything I
found that his accountant had his sales on accrual, cost of goods sold on
cash basis.
Example:
Accrual sales $200,000.00
Cost of goods sold cash basis $75,000.00
$125,000.00 Gross Profit
Gross profit ratio 40% of his
business would normally be $200,000.00
$120,000.00
$80,000.00
So gross profit ratio off.
If both were on accrual basis.
$200.000.00
$120,000.00
$80,000.00 Gross Profit
Not 125,000.00 as Cash
Merchandise Accrual on Sales.
It came out about the same on
cash basis + - say about 1%.
For expediency the client chose cash basis after showing him the
difference between cash or accrual method of Accounting.
Please note: Regardless of the
other expenses the difference of Gross Profit Ratios would have carried
forward as net Profit, showing $45,000.00 above what he earned if in 20%
bracket Income Tax $9,000.00
Approximate social security tax $6,885.00
Additional Taxes $15,885.00
Which he did not have, nor could he borrow.
Thank God it was his first year in business and this could be expediently
corrected.
Famous quotes:
"It
is not illegal to put your affairs in order to pay less tax."
Quote from Chief Justice Warren.
Note: Within the scope of the law.
I don’t take accounts that cheat
our Government, referred to as tax fraud.
The Congress of the United States
provides tax advantages and tax loop holes.
Tax Planning is where you save
money and it’s legal!
A funny incident.
I was still in the North East
before I became a Texan.
The neighborhood was changing so I
kept a Beretta on my desk and a shotgun behind me, with two well-trained
attack dogs.
My America was disappearing around
me.
Individual – not business
clients had to wait their turn, I no longer do individual returns.
The other preparers were also
individual prepared.
When I finished with my client
another was ushered in.
He took notes of my preparedness,
we introduced ourselves to one another and I looked at his w-2’s, and
asked him, “How many dependants do you have?”
He answered, “Well how many do I
need?”
I could tell by his presence and
tone he was not joking.
I told him, “I don’t do tax
returns that way,” and handed him back his w-2’s and told him to get
out.
He said, “You aren’t going to
shoot me are you?”
I said, It depends”.
His face turned white and he
hurried off.
What the Government does not do
anything about, such as:
The Golden Triangle, 2 exist to
that I know of
1: Is made up of PA, NJ, NY –
where some people manage to collect welfare checks from each State.
2:The other area is the Chicago
area.
Also people that have 2 social
security numbers or more, work ½ a year under each name, taking
dependents that are also on welfare.
Hee Haw a combination of 1 and 2.
I support my government, which
included IRS of which there are many devoted employees among them some
veterans of USA.
The documents I hold highest are
the Declaration of Independence and the Constitution.
Sometimes I refer to them as my
religion.
On a particular occasion I left
some documents with a responsible IRS agent who was an Internal Auditor
and outside auditor, the reason for leaving them was that their copier was
all tied up.
I got a call from him that he
would be passing close to my office the next day and could I meet him to
get the documents.
Of course I could, so we made an
appointment at a mutually satisfactory location.
He had a few minutes to chat, told
me an outside audit he was on, that the people had their papers with a
desk in the attic, so there he was in a non air-conditioned and
unventilated attic with a guard dog watching him.
Excuse my French; I said, ”You
don’t have to take that shit. He replied, “My Supervisor said I do and
I can’t do anything about it.
My quick visualization gave me a
picture of his Supervisor put in the same situation.
I knew some influential people and
had a few markers out.
So I put a stop to that.
I
believe that which is fair is fair and it applies to all citizens.
Texas
Tax Savers ~ Right on Target!
