# Slightly terrified about letter from IRS



## hdavis (Feb 14, 2012)

eastend said:


> anyone have experience using a "regular" accountant vs a CPA??
> I've always used a CPA, but have been thinking of switching to someone who is simply an accountant.
> As far as I can tell, the biggest difference is that a CPA can work on your behalf with the IRS while a non-certified accountant has limitations on what they can do vis a vis IRS.


The big difference is if you use a CPA and provide them with the correct info, then you're off the hook for criminal prosecution. Not so with an accountant.


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## hdavis (Feb 14, 2012)

Insulation levels:

1) Tax lawyer - highest, has attorney / client privilege. Off the hook for criminal charges where you followed their advice.

2) CPA no privileged status. Off the hook for criminal carges where you followed their advice.

3) Accountant - no privileged status. Not off the hook for criminal charges, even if you followed their advice.

1 & 2 take away the obvious negotiation tactic of "Pay us $X or we're putting you in jail." 

Accountants can be used as bookkeepers, but taxes need to be done by actual CPAs if you want to avoid potential criminal exposure.

BTW, everyone knows the tax law is changing, and anything you do to avoid taxes (in the IRS's opinion) can now be disallowed? Make sure you write down your business reason for doing what you do in these areas....


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## Calidecks (Nov 19, 2011)

hdavis said:


> Insulation levels:
> 
> 1) Tax lawyer - highest, has attorney / client privilege. Off the hook for criminal charges where you followed their advice.
> 
> ...


Doesn't everyone try to legally avoid taxes or lessen their liability, legally? As long as it's legal how can it be disallowed?


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## griz (Nov 26, 2009)

Californiadecks said:


> Doesn't everyone try to legally avoid taxes or lessen their liability, legally? As long as it's legal how can it be disallowed?


IRS makes rules as they need them....


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## Calidecks (Nov 19, 2011)

griz said:


> IRS makes rules as they need them....


If we had a flat sales tax they could be dismantled


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## griz (Nov 26, 2009)

Californiadecks said:


> If we had a flat sales tax they could be dismantled


Just guessing you mean "flat income tax"....


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## Calidecks (Nov 19, 2011)

griz said:


> Just guessing you mean "flat income tax"....


I like the idea of a national sales tax on what you spend. Say 10% of all sales. Everyone pays the same and no one pays if they don't have any money. The rich spend more so in theory they pay more.


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## griz (Nov 26, 2009)

Californiadecks said:


> I like the idea of a national sales tax on what you spend. Say 10% of all sales. Everyone pays the same and no one pays if they don't have any money. The rich spend more so in theory they pay more.


I *may* be agreeable to a flat income tax, but......

Oregon has NO sales tax and it won't be likely we ever will....:thumbsup:


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## Calidecks (Nov 19, 2011)

griz said:


> I *may* be agreeable to a flat income tax, but......
> 
> Oregon has NO sales tax and it won't be likely we ever will....:thumbsup:


I'm cool with the states not having a sales tax. But I think a national sales tax to completely replace our entire tax code, would simplify it. And it would be equal across the board as in fair.


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## hdavis (Feb 14, 2012)

Californiadecks said:


> Doesn't everyone try to legally avoid taxes or lessen their liability, legally? As long as it's legal how can it be disallowed?


Slipped into the affordable care act. It seems to be waiting for serious abuse...


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## griz (Nov 26, 2009)

Californiadecks said:


> ...I'm cool with the states not having a sales tax. But I think a national sales tax to completely replace our entire tax code, would simplify it. And it would be equal across the board as in *fair*.....


Fair is generally put on by counties and is a gathering of folks to enjoy amusement, entertainment, food, exhibitions & livestock...:thumbsup:

not sure the other meaning of "fair" has much to do with everyday life...:whistling


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## Calidecks (Nov 19, 2011)

griz said:


> Fair is generally put on by counties and is a gathering of folks to enjoy amusement, entertainment, food, exhibitions & livestock...:thumbsup:
> 
> not sure the other meaning of "fair" has much to do with everyday life...:whistling


Well if everybody pays the same tax on what they buy instead of hiding income on what they make. Wouldn't that be the same for everyone. When things are the same for everyone, isn't that considered Fair?


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## TxElectrician (May 21, 2008)

Californiadecks said:


> Well if everybody pays the same tax on what they buy instead of hiding income on what they make. Wouldn't that be the same for everyone. When things are the same for everyone, isn't that considered Fair?


As long as the filks on assistance aren't exempt


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## griz (Nov 26, 2009)

Then the fun and games will begin on how much we buy stuff for...:whistling


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## Calidecks (Nov 19, 2011)

griz said:


> Then the fun and games will begin on how much we buy stuff for...:whistling


Not near as bad as the 3000,000 page tax game we have now. There will always be games. But with the one we have now, there's people committing felonies and they don't even know it.


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## Golden view (Feb 16, 2012)

Californiadecks said:


> Not near as bad as the 3000,000 page tax game we have now. There will always be games. But with the one we have now, there's people committing felonies and they don't even know it.


It's way too complex, and it employes a lot of people that could be doing other things. But people and business with money push every which way and things get more complex.

A federal sales tax sounds great in principle but it can be cheated on too.


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## hdavis (Feb 14, 2012)

Golden view said:


> A federal sales tax sounds great in principle but it can be cheated on too.


I'd argue any tax can be cheated on, so we should just get rid of taxes.:laughing:


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## sailfish27 (Jan 25, 2014)

Californiadecks said:


> I like the idea of a national sales tax on what you spend. Say 10% of all sales. Everyone pays the same and no one pays if they don't have any money. The rich spend more so in theory they pay more.


Never going to happen. How would the politicians be able to control us? With a federal flat tax they would have nothing to do. No carrot to buy votes with and no stick to punish dissenters.


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## cedarboarder (Mar 30, 2015)

Golden view said:


> Time to stop doing my own taxes.


yup while your at it get lawyer too. only a matter of time.


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## Golden view (Feb 16, 2012)

Time to buy that boat.


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## hdavis (Feb 14, 2012)

:clap::clap::clap::clap::clap:


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## Calidecks (Nov 19, 2011)

Golden view said:


> Time to buy that boat.


The best two days of owning a boat. The day you buy and the day you sell it. :laughing:


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