Taxes at IB

I don't get this at all.

Even a small firm can do million trades/year.
The IRS is not gonna go through a million trades...
They will just trust your statements and your accounting firm.

Business 101

Use a reputable accounting firm.
The IRS will never audit you...
Because it's a waste of everybody's time to go after reputable accounting firms.

If you are rolling your own tax returns...
Then you are a sitting duck... and deserve what you get.
 
Quote from HoundDogOne:


If you are rolling your own tax returns...
Then you are a sitting duck... and deserve what you get.
More...

I trust my own calculations more than having somebody else do it.
 
Quote from sprstpd:

I trust my own calculations more than having somebody else do it.
More...

If you were running a serious business...
You would not have the time or tax expertise to file your own returns.

Also...
I'm on my 5th or 6th accounting firm.
None have been dishonest... just less than competent.

I'm sure the IRS will audit small or marginal accounting firms like clockwork...
And leaves the good ones alone.
IRS agents are not in the business of wasting time...
And they have stats on everything.

The one I have now is FANTASTIC...
And I'm certain that I am getting the best advice... and paying accordingly.

So if you have a young business...
Do not hesitate to fire your accountant or lawyer...
And keep searching until you arrive a keeper.
 
Quote from HoundDogOne:

If you were running a serious business...
You would not have the time or tax expertise to file your own returns.
More...

What do you consider a serious business?

I trade full-time and only trust myself to get my taxes right. It is part of my business to know the tax law applicable to my business.
 
Quote from sprstpd:

What do you consider a serious business?

I trade full-time and only trust myself to get my taxes right. It is part of my business to know the tax law applicable to my business.
More...
To use my business as an example...
Which I consider to be a "small business"...
(Low 7 figures in Net Capital, mid-6 figures annual income)...

My financial statements are ** audited ***...
And I have to file 3 different returns...
At 3 different times of the year:

(1) A Limited Partnership return

(2) A corporate return

(3) A personal return

I need professional tax advice each time I file.
My total annual accounting cost is roughly $10,000.

There is a REASON why it takes at least 10 years to become a CPA...
And a Partner in an accounting firm.
And I wouldn't even listen to anyone below this level professionally.

I think what you fail to take into account...
Is the substantial credibility that comes with having Audited Financials from a name Accounting Firm.
Your investors feel secure...
The IRS will leave you alone...
And one has credibility when dealing with potential investors or business partners.

Your roll-your-own approach... will dead-end you in the business world.
 
Quote from HoundDogOne:

Your roll-your-own approach... will dead-end you in the business world.
More...

I understand now, thanks for the clarification. I just trade for myself so the tax reporting is much simpler.
 
Quote from HoundDogOne:

Your roll-your-own approach... will dead-end you in the business world.
More...
Not necessarily true. I've had CPAs do my taxes and make errors. I prefer to do my own.
 
You must log in or register to reply here.
Back
Top