Not Sure the CPA is Right?

[daycare]

I had to have my 2011 taxes redone do to an audit and other stuff.

that year I had a huge loss. I termed all of my dcks and started over again. So I spent a lot more than I made trying to redo my program, advertising and etc.

Well the CPA told me last night that I could not claim any of my utilities, because I was already -2000 loss. She said if I did, it would raise more red flags. She also said that I could not claim any of my car insurance or miles driven for the same reason that I am so upside down.

Is this correct?

[Michael]

I had to have my 2011 taxes redone do to an audit and other stuff.

that year I had a huge loss. I termed all of my dcks and started over again. So I spent a lot more than I made trying to redo my program, advertising and etc.

Well the CPA told me last night that I could not claim any of my utilities, because I was already -2000 loss. She said if I did, it would raise more red flags. She also said that I could not claim any of my car insurance or miles driven for the same reason that I am so upside down.

Is this correct?

Don't know but I wouldn't disagree with a certified CPA. Suggest you get a second opinion if you really want to pay for it. I remember one year when my personal CPA said I needed to pay and extra $16k to the IRS in the next couple days. I thought, there is no way I owe that. I then took my personal taxes to my business CPA thinking there had to be a mistake and she came to the same conclusion! So I paid the $16k AND two CPA bills.

[daycare]

Don't know but I wouldn't disagree with a certified CPA. Suggest you get a second opinion if you really want to pay for it. I remember one year when my personal CPA said I needed to pay and extra $16k to the IRS in the next couple days. I thought, there is no way I owe that. I then took my personal taxes to my business CPA thinking there had to be a mistake and she came to the same conclusion! So I paid the $16k AND two CPA bills.

I didn't say anything to her. I just asked her if I could think about them before we submit. I already went through a nightmare with the IRS with the Audit, so I really want to make sure that it gets done the right way. BTW she is my 3rd CPA that I went to. The first two had ZERO clue on how to do daycare taxes.....

last year I did them myself and I am just hoping I did them right.

[TwinKristi]

I didn't say anything to her. I just asked her if I could think about them before we submit. I already went through a nightmare with the IRS with the Audit, so I really want to make sure that it gets done the right way. BTW she is my 3rd CPA that I went to. The first two had ZERO clue on how to do daycare taxes.....

last year I did them myself and I am just hoping I did them right.

There's a guy out of Sacramento who does daycare taxes as a specialty and you have to mail him your stuff but supposedly he knows the ins and outs of DC taxes. But once you've been audited you will be on a red flag list for many years, if this is going to cost you a lot of money I would consider getting a 2nd opinion but if it's only going to reduce your refund I wouldn't bother.

[Childminder]

Call Tom Copeland and discuss it with him?

[daycare]

There's a guy out of Sacramento who does daycare taxes as a specialty and you have to mail him your stuff but supposedly he knows the ins and outs of DC taxes. But once you've been audited you will be on a red flag list for many years, if this is going to cost you a lot of money I would consider getting a 2nd opinion but if it's only going to reduce your refund I wouldn't bother.

I dont care if I get a refund or not. I have already paid out over 9k for the mistake that was made from the start. I just want to make sure that I do it right so that I don't make anymore mistakes

[CrackerJacks]

An audit us my worst nightmare glad you got through it. And hopefully you can find someone who knows what they are doing.

[Unregistered]

not true

I had to have my 2011 taxes redone do to an audit and other stuff.

that year I had a huge loss. I termed all of my dcks and started over again. So I spent a lot more than I made trying to redo my program, advertising and etc.

Well the CPA told me last night that I could not claim any of my utilities, because I was already -2000 loss. She said if I did, it would raise more red flags. She also said that I could not claim any of my car insurance or miles driven for the same reason that I am so upside down.

Is this correct?

You can claim all the loss you legally have, it will carry over to the next year. NOT claiming those things is not wise, because they are normal deductions for our business. Same with miles driven. Those are all legal things to do and deduct. Taking a loss is not a bad thing if it is real and it is not a red flag.

Not every person who does taxes knows daycare taxes. I would contact Tom Copeland and ask him for personal help, he will even go to an audit with you if you want. Ask the CPA for a written tax law case that supports her saying this.