The $40,000 Tax Mistake My Client’s CPA (almost) Made

I make it a part of my regular services to ensure that the CPAs my clients work with aren’t making any costly mistakes. And trust me, even the best of CPAs can make a mistake on a tax return.

It’s easy to see why…

Last year 142,577,000 returns were filed. And let’s be realistic–it’s still an INSANE proposition that we need to file taxes as soon as 11 weeks after the year officially closes.

With that many returns to file and that short of a turn-around time, it’s no wonder there are mistakes on tax returns. Sometimes they’re costly ones that even your CPA might miss.

Now, let’s face it. CPAs are BUSY. Even a small firm is likely processing thousands of tax returns each season, which means things can easily be overlooked. And that can lead to mistakes on your tax return.

In my job the CPA overlooks the work. But once your CPA is ready to file your taxes, guess who oversees their work? You guessed it: the IRS themselves.

And you really don’t want to be waiting for the IRS to tell you if your taxes were filed correctly or not!

In the last few years I have caught hundreds of thousands of dollars in mistakes made on business tax returns. One situation a few years back was particularly memorable because it included a mistake to the tune of $40,000….

How did I discover this oversight on the CPAs part?

Turns out that I saved my client from paying an additional $40,000 just because their CPA missed checking ONE BOX on the form before filing it.

Another year one of my client’s CPAs “forgot” that they had already paid estimated taxes (because the software didn’t carry over the payments). Because of this oversight, that client had to pay an extra 70K!

So CPAs DO make mistakes on tax returns. I see it all the time. Having someone take that “second look” at your taxes becomes a really big deal in moments like this.

Not only that, but having a second look at your taxes is also important when you hire a “DIY” option like Turbotax or H&R block, or if you don’t have the proper bookkeeping in place.

I had a client that didn’t have proper books prepared. So when their CPA filed their taxes, they missed a lot of transactions that weren’t recorded correctly. Thankfully, my client and I were able to map those easily enough to take in the next year so they didn’t lose out on those deductions.

So you need to have CLEAN AND ACCURATE BOOKS to start with to file accurate taxes. And your CPA may not verify that your books are accurate in the first place. This can lead to unnecessary mistakes on your tax return.

So it (literally) pays to get a second look over your taxes!

If you are worried about the status of your books or you’re interested in that “second look,” book a call with me so we can chat.

My goal is to keep my clients as compliant as possible, and I’m here to help you do just that. So if you’re ready to chat, let’s plan it! Book your call HERE and let’s see how I can help you take charge of your taxes!

Until next time,

Love, light, and MONEY, honey…

Kaylee