Comments on: What Happens on MySpace Doesn’t Stay on MySpace

By: Kelly

Kelly — Mon, 08 Dec 2008 19:43:14 +0000

Skip – that’s pretty funny! Usually, it’s the other way around. One of my clients from waaaay back showed up for our appointment in a new car that cost about $100,000, bragged about his recent trip around the world and then tried to explain that he had no income…

By: SKIP MCQUAID

SKIP MCQUAID — Mon, 08 Dec 2008 16:15:22 +0000

I have a client who likes to brag about how much money he makes – and everyone that knows him knows he is lying…..I have never met anyone who pays more in bad check charges then this guy…..but it’s always a “deal” that he made 40 million on or another one that he really played the smoothie and he made 12 million – and he tells me this while I’m looking at his W-2 and interest income (2 bucks last year)and then he tells me the reason all that other money doesn’t show up is because he has a foreign corporation that hides it all for him….which I know, from knowing him for over 20 years is just another story….but I congratulate him anyway on his shrewdness……well, last year he bragged to the wrong folks and I had not one, but two IRS folks come to visit me about his returns. After I chuckled a bit about the fact that he had finally actually convinced someone that his stories were true I invited the RA’s to take a ride with me. I drove them by his home and by his work place and pointed out his car. Then I told them they probably needed to check with our local DHR folks and find out how much his family received in food stamps every month. Last weeek (perhaps the week before that) I received a call from one of the RA’s – the case is closed – the guy hasn’t got a dime hidden anywhere on this planet….in fact he probably doesn’t even have a dime – even out in the open…..folks who have anything spend most of their time bemoaning their financial status, not bragging about it…..but I kinda enjoyed the whole scenario knowing what the ultimate result would be – Oh, I called the guy to give him the news of the case being closed and he assured me he had put one over on them……so I congratulated him again about how smart he is…..and will have to call him again because he wrote me a bad check.

Skip McQuaid

By: Robyn

Robyn — Mon, 08 Dec 2008 00:03:19 +0000

Honestly, when did kids really think things through? Like Mr. Thomas, I expect they will have learned something from this foray into business ownership and they’re lucky money is all their internet indescretion cost them.

By: Boyd Thomas EA

Boyd Thomas EA — Sun, 07 Dec 2008 22:19:24 +0000

Although true, proof of compliance is largely the taxpayer’s responsibility, when it comes to potential unreported income, the burden shifts to the taxing authority. I have no idea what was provided by the Oklahoma Alcoholic Beverage Laws Commission, but I assume it was convincing.

Hopefully the students have learned a lesson that will serve them in future business endeavers!

By: Robert D Flach

Robert D Flach — Sun, 07 Dec 2008 12:56:27 +0000

Good story.

The best advice in the post is the last word – “And use a little common sense”. There seems to be a great lack of that commodity lately.

Pet peeve – I wish people would use the term “have a good tax professional” instead of making the assumption that only a CPA can do taxes!!! As I have said many times over the years – I have found more mistakes on 1040s prepared by CPAs than on self-prepared returns.

TWTP

By: AccountingElf

AccountingElf — Sun, 07 Dec 2008 05:24:21 +0000

Ah, I love it!
Although, I imagine if they’d actually made as much money as they claimed it would be evident in all sorts of expensive purchases… Thanks for the reminder post though!

By: Brad Heck

Brad Heck — Sun, 07 Dec 2008 04:40:26 +0000

How many times do we have to tell people to keep records? I’m sure the party business is a cash business.

Great story and thanks for the post!

Brad Heck