I reviewed a tax return for a potential client that makes about $2 million each year. He was interested in financial services so i took a phone meeting.
He sent me his tax returns for 2021 and 2022 and his W2 was about 2.8 milllion each year. BOTH years had an S Corp loss of about 400K and rental real estate losses of about 100K.
He didn’t tell me about the S corps. When i asked, he got a bit defensive and said he submits expenses to his “TAX GUY”, who takes care of it all.
The returns were prepared by a shop in Los Angeles.
I inquired a bit and he told me that “his” guy was a rock star and told him all was kool.
In an E mail I told him I had no interest in working with him but told him, in my professional view, his return was borderline criminal.
Anybody ever just get pissed off when they see the fraud that some shops commit. I am confident this accountant, an EA, does this routinely.