IRS Audit

[Soundbc1]

To begin with I want you to know that for the last 48 hours I have been in an ER room with my daughter, so my attitude is bad. I have had 1 1/2 hours of sleep. (She is now fine.)

I had a prospect for a DB plan (she presently has a solo 401(k) plan) because she wants to put away more. I can design a DB plan for her to put away 192% of compensation.

When I asked her for her earnings (W-2) and what she was contributing to her 401(k) plan, her answers first showed she was contributing more than 415 limits and, of course her CPA was deducting more than 25% of eligible compensation for the employer portion.

When I pointed this out, she said her CPA of 25 years set up the plan and for me to "F" off. I replied "Merry Christmas"

I feel vindictive, is there a way to let the IRS know and get her plan audited? She is cheating on her taxes and we all pay for it.

I really just want to vent. Thx for your time.

[EPCRSGuru]

Glad your daughter is fine. You are fortunate to have discovered this sponsor's attitude before she became a client! Those of us who work in the small plan market all have horror stories involving clients who don't understand the difference between "plan" money and "their" money, or the trade-offs one has to make in return for the favorable tax treatment of qualified plan funds. Some clients are just funny; others are infuriating. And don't get me started on accountants OR investment advisors!

I am fond of an expression sometimes known as Hanlon's Razor. "Never attribute to malice that which is adequately explained by stupidity."

Best wishes.

[david rigby]

Seem possible that this CPA has other clients for whom the result is a 415 violation. Your best revenge could be to be the white knight, offering to help fix them. Eventually, the clients will probably drop the CPA, but keep you.

[QDROphile]

Some professionals are bound by ethical code or other requirements for confidentiality about what is learned in an interview with the prospect of engagement. If you have no duty of confidentiality, you might be interested in a whistleblower award. A Google search will take you to the information on the IRS website.

[Bird]

Take a deep breath, get some sleep...and let it go. Believe me, I understand, but no good will come of it. If it makes you feel better, write her a "just for the record" letter explaining why things are wrong.

[Soundbc1]

Thanks for the ears, I just wanted to vent before I "let it go". In 30 years, I had never been shown the door with a 4 letter word.

There were many "signs" before that I wasn't going to accept her as a client.

[Bill Presson]

Thanks for the ears, I just wanted to vent before I "let it go". In 30 years, I had never been shown the door with a 4 letter word.

There were many "signs" before that I wasn't going to accept her as a client.

I've had a few people cuss at me; mostly participants wanting me to give them their cash right then.

In any case, glad your daughter is okay. ERs are scary for kids.