1/What Would You Do ? The IRS Audit

Your construction client is in the midst of a field audit by the IRS. As the audit is concluding, it is pretty obvious it will result in a no change. Towards the end of the audit, the agent asks if you can do him a favor. His brother is in the construction industry and pays all of his employees as independent contractors rather than treating them as employees. Since he saw what a great job you did with the business under audit, the agent asks if you can take his brother on as a client. How would you react to this? What would you consider when making your decision?

What Would You Do? Board of Directors

A partner in the CPA firm you work for is on the board of directors of a private school. He is now termed out and cannot serve on the board anymore, so he asks you to take his place. Not wanting to upset your boss, you agree. As you settle in and go to board meetings, you see why the partner was so anxiousit really is a nice group of people who are dedicated to their community and education. Other than an attorney, you are the only non-education professional on the board, so they look to you for tax and accounting advice.

What Would You Do? A New Client

After working for a large CPA firm, you are excited to start your own. Since your experience was auditing manufacturing companies, you feel competent in that industry; indeed, your first two clients are manufacturers. After six months working with one of the clients, an IRS audit letter shows up. Your experience is in accounting/auditing but, as you look at the letter, it looks like all they are asking for are some inventory records and some entertainment receipts. In addition, they want documentation backing up the presidents salary. How would you feel representing the client at the audit? Are there any actions you can take that might help in your representation?