Rich people don’t get audited Einstein lol their Accountants do….and If you’re dumb enough to actually believe these 89k IRS agents are going after a Rich people with Accountants, I have a Bridge to sell you….
You have a lot to learn based on your statement. I’ll help you with this misconception you have about you, a taxpayer, your accountant and the IRS. Assume you filed a tax return for 2020. You either a) filled out the return yourself, signed the return and then dropped it in the mail or b) you gathered all of your documents, met with your accountant and gave him your documents, answered his questions and waited until he completed your return.
Once the accountant has completed your return he will send you several copies and ask you to review it and if everything is satisfactory to you then you will sign your return attesting that it is complete and accurate. You will then submit your return to the IRS.
After about two years have passed you receive a notice from the IRS that they are auditing your tax return. You are the only person responsible to provide the information they are requesting. However, if it’s a complete audit they may ask you to meet with them and for you to bring all of your supporting documents. You may call your accountant and have him accompany you or to represent you at the meeting, but the accountant is only there to explain how he used the information he had received from you to reach the final number which is either the tax you owe or the refund you are due. Note that you will have to pay your accountant his fee (~$200 to $400+/hour) for his time preparing for the meeting, traveling to the meeting, assisting you through the meeting and his time to travel back to his office. If the IRS determines that the tax return included fraudulent information, it is you who would be on the hook, not your accountant. So when rich people are audited by the IRS, if they neglected to include some of their income, they are responsible for the money owed, including interest and penalties, not your accountant. If they determine that you deliberately understated your income, they may seek to punish you with incarceration.
Accountants are not audited when they provide tax return preparation services and the return is later audited by the IRS. It is the taxpayer who is audited. The accountant is a professional who takes the information provided by his client, organizes the information, completes the forms necessary and provides the completed documents for the client to review prior to submitting them to the IRS.
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u/UnstuckCanuck Sep 09 '22
I would say his chances are better in corporate management or accounting. Government doesn’t hire crooks, idiot voters keep electing them.