[CAUT] Taxes (was: PTG dues)

[Douglas Wood]

It is well to remember that the tax system is the only place in  
American jurisprudence where the burden of proof is on the accused.

That is, it is up to the taxpayer to prove that the assertions on the  
tax form are correct. Hence the importance of documentation.

For those of you who have never consulted a tax advisor, I'd  
definitely recommend it. I've been more than satisfied--actually  
entertained quite thoroughly, as well as edified--by mine. He is a  
CPA "enrolled to practice before the IRS" and takes great pride in  
knowing the fine points of what's up this year. It's a joy to consult  
for an hour each year (he really is very funny, and has lots of  
stories) on the handful of questions that always seem to come up  
through Turbo Tax. Quite reasonable cost, and he promises to go to  
bat for me should I be audited. Which he seems to think is much less  
likely because he has a reputation with them. Good, fair, no-nonsense  
and no quarter given.

Doug Wood


On Jan 9, 2008, at 9:04 AM, Israel Stein wrote:

> On Wednesday, January 09, 2008  Carl Root wrote:
>
>> A posted list of "red flags" would be interesting, actually, if you
>> have the time.
>
> I'll probably me messing around with my taxes this coming Sunday,  
> so I'll see what I can find in the Turbo Tax for this year.
>
>> This raises the question of whether on not you should take a
>> legitimate deduction, knowing that it could flag your return.
>> Sometimes it makes sense to hold it, then bring it out if you're
>> audited to make sure that they're the ones who owe you money.  Trying
>> to nickel and dime uncle sam every year, an attitude that is all too
>> common, never made much sense to me, for a variety of reasons.
>
> Good point, Carl. This is something that good, conscientious tax  
> professionals will point out to their clients - balancing the risk  
> of inviting an audit against the few extra dollars in tax savings  
> that you might gain. Sometimes the time lost to a possible audit  
> just isn't worth it.
>
> Israel Stein