Are any of your clients billionaires?

Technical topics regarding tax preparation.
#21
Nilodop  
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So that person gets a nice benefit and Medicare coverage for very little FICA tax payments paid in over the years. There is little way the IRS computers can find this kind of abuse.. Does it violate the law?
 

#22
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Jake wrote:In my career the biggest abuse I ever saw was a trust fund "baby" that had a "small business" (really a hobby) that supposedly earned just enough to qualify for soc sec and medicare benefits. So that person gets a nice benefit and Medicare coverage for very little FICA tax payments paid in over the years. There is little way the IRS computers can find this kind of abuse.


I have seen this with many formerly undocumented people. They set up a schedule C, pay just enough to qualify and do it for 10 years. Better than any IRA.

They pay a small FICA Tax and get social security for life from age 62.
 

#23
jon  
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The three or four States I have seen administer and ALL of them test of assets(net). The spend down in the those states I have seen ALL were around $3,000(net). If married and a few other instances residence and assets are different if held jointly.

What STATE are you practicing in???
 

#24
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Southpark, funny I should have told my high end real estate investors to do that :)
 

#25
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From #20, above: "...that supposedly earned just enough to qualify for soc sec and medicare benefits." Well, did they or did they not earn just enough to qualify? If they didn't, I think fraud may be involved. FWIW.
 

#26
Coddington  
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RazorbackCPA wrote:The Walton Family basically has created their own CPA/Tax law firm. I’m guessing many of the billionaires do that.


I could (but won't) name at least one other that has done something like that, though it involved getting an existing CPA firm to give up its license in exchange for being the family office/treasury function/accounting function for the billionaire and the billionaire's business.
-Brian

Director of Tax Accounting Methods & Credits
SourceAdvisors.com

Opinions my own.
 

#27
Nilodop  
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Brian. why would they have to give up their license?
 

#28
Coddington  
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They set it up this way back in the 1990s. Presumably it was related to independence issues, i.e. they had none.
-Brian

Director of Tax Accounting Methods & Credits
SourceAdvisors.com

Opinions my own.
 

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