Finding a good CPA

[Berge20]

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IMO, if you are going to hire a CPA...why would you want to have to "walk her through the steps"?


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You married?

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No, you raise an excellent point. [img]/images/graemlins/grin.gif[/img]

[1p0kerboy]

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No, you raise an excellent point.

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Actually my wife did. She told me to type that in there. J/K

[*grendel*]

I'm a CPA, and no CPA knows it all. We do something called "research" on issues we are unfamiliar with. That is why we charge the fees we do. We can find the answer, and any CPA who says he "doesn't know" without adding, "but I can find out," either isn't worth a crap or doesn't want your business. Also, let me add that many CPAs are notoriouly conservative and risk averse.

Just my two cents worth...

[I_C_ALL]

I finally sat down with a CPA last weekend. He told me many things I knew(recreational on a 1040 with top line adding winnings on to and taking losses on itemized deduction page while as a professional, using a schedule C to show the "business" income and "business" losses(winnings and losses) and then the net number goes on the 1040.) A poker site once mentioned forming a corporation to better prove to the IRS that your intent is to be treated as a professional and flow the winnings, losses and all related expenses through the corporation. The corporation would accomplish two things:

1. With a subchapter S corporation, you would "pay" yourself a salary of 1/4 to 1/2(flexible, your CPA will recommend an appropriate salary) of the total net income of the company. This would be your winnings minus your losses minus your expenses. You only pay self employment taxes (15.3%) on your "salary". You would pay normal federal income tax on the balance of net income, but wouldn't have to pay self employment taxes on it.
2. THE MOST IMPORTANT ASPECT... According to this CPA, 1 in 10 1040'S with schedule C's are audited. I said, not bad that's 90% likely not to get audited. He then said only 1 in 800,000 sub S returns(1120s) get audited.

This accountant isn't too knowledgable with the specifics of our business, but he knows his business. As someone else mentioned, he can take the information I give him and find the answers because he'll know the questions to ask. That is the most important thing.

In the end, I told him I didn't mind getting audited because I don't plan on hiding anything. He said that's only because I've never been audited. Not sure if that was a little "puffing" on his part, but I'm taking his advice either way.

I found him through a family member. I heard he was married to an IRS agent and liked him immediately. I spoke to another family CPA in my neighborhood and he told me he wasn't comfortable with the gambling income. If you are told this, don't be offended. Say thank you and move on. My new CPA has absolutely no problem with it and even seemed a little interested when I was done explaining.

Last thing, definitely get one. Don't go on your own. When you get audited, they don't look at just one year. You want someone who knows what they're doing. Expect to pay a couple to a few hundred dollars an hour for this advice. If you're not, you're probably not getting the advice you need.