We are taking over a large client from a retiring CPA. We asked about the estimated tax payments made during the year, and the response received from the CPA is that since the taxpayer owns less than 10% of his passthrough entities, the rule is that you can consider it all earned on 12/31, so everything is included in Q4. We are talking millions of dollars in taxes.
I know this is bogus, but where would someone come up with this? Maybe a really old rule? Or is this one of those practitioners that make up their own rules as they go along?