Posted on 02/14/2022 2:19:33 PM PST by SeekAndFind
Former President Donald Trump's longtime accounting firm recently informed the Trump Organization that 10 years worth of Trump's statements on his financial worth "should no longer be relied upon."
The determination comes after New York Attorney General Tish James' office said last month that these "Statements of Financial Condition" repeatedly "misstated objective facts" including the size of his Trump Tower penthouse; overstated his liquidity; deviated from general accounting principles to reach property valuations; "failed to use fundamental techniques of valuation"; and did not disclose that some of those valuations were artificially inflated to help Trump's brand.
Mazars said that it reached its conclusion based on James' revelations, its own internal investigation into the matter, and information it received from "internal and external sources."
"While we have not concluded that the various financial statements, as a whole, contain material discrepancies, based upon the totality of the circumstances, we believe our advice to you to no longer rely upon those financial statements is appropriate," the firm said in its letter to the Trump Organization.
(Excerpt) Read more at msn.com ...
I see that too.
Some years ago I was working for a client who was involved in a legal dispute with a closed corporation in which he was a shareholder.
The case took an interesting turn in my client’s favor when the company’s accountant sat for his deposition. The financial reports he had prepared were so badly flawed that he first tried to pretend he never prepared them. Then he admitted that he must have delivered them to the company … he couldn’t deny this anymore because the lawyer questioning him had a copy of the e-mail in his case file, showing that the CPA was the one who transmitted it to the company. But he said he never reviewed the financial reports even though he signed them.
Not only did my client win the case, but by the time it was over the CPA found himself answering to his own professional licensing board over that fiasco.
Donald Trump has openly stated that his tax returns have been audited by the IRS for the past 15 or so years. If anything was wrong they would have nailed him to the wall.
I think that was their plan even before the election. They fear him, as he does not answer to those who pull the puppet strings.
The appraisals and tax documents are are independently arrived at and no CPA can do otherwise, or they are the fraudsters.
You obviously do not know about CPAs, appraisals, or taxes.
That is exactly how it would work.
Thank you for your real life experience. Sharing that was just perfect to hear!
You know - your post is one of the reasons I hang on FR - for that .03% of posts that actually contain information.
Thanks!
The CPA asks for documentation. That documentation is provided to the CPA by the client. The CPA then fill out the appropriate tax forms with regards to the various tax deductions and loopholes contained in the tax code.
Therefore, the CPA relies on the client to provide accurate information.
Are there times where the CPA is Sierra? YES. Will a good CPA ask questions and digna little deeper? probably.
However, ask your CPA who is responsible for providing the accurate information on a tax return
Add to that, he isn’t using the tax preparer in Walmart.
I’m betting that not only does he have a legit accounting firm but more than a few tax attorneys doing parallel work to make sure everything is done legitimately.
After skimming through this again, is it out of the realm of possibility that the state is providing corrupt information, forcing the CPA firm to come out with these statements?
Are they providing false information thinking it’ll lead to something?
If they are playing dirty and it comes out, do they just get to shrug their collective shoulders and say the information came to them anonymously?
CPAs know what is valid information and the do not use uinappropriate sources.
So their clients are inappropriate sources?
Thanks for your nice comment.
I thoroughly enjoy the occasional opportunities I have to add clarity and depth to topics on Free Republic.
So, Crooked Hillary’s got something on the NY attorney?
Not true, I was a CPA for 25 years. It depends on the level of service: a compilation, a review, or an audit. The first two are limited engagements. However, during an audit, if fraud or potential fraud is detected, then additional procedures must be employed and reported.
When my clients gave me inaccurate information, I gently advised them that we were going to correct it. Most went along with the corrections. Those that didn't became former clients...it was just a couple.
I split my time between small company CFO jobs, and being a sole practitioner. I haven't prepared a return professionally in about ten years, though that will likely change this year.
Yeah, I told my bank that my house is worth 5 million and I asked them to loan me 2 million on it and they said, "Sure, no problem."
You were the accountant for 25years. I get it. And I’m not trying to pick an effin’ fight.
When my clients gave me inaccurate information......But you relied on the fact that they gave you accurate information. If you found out that they gave you inaccurate information you dealt with it. And, unless there was a red flag, you assumed all was true and accurate.
In the example regarding Donald Trump....it appears, for now, that the State has given the accounting firm contradictory information than what was provided by Donald Trump. Therefore, the INITIAL information received from Donald Trump was deemed to be accurate and the taxes were done with the accounting firm doing the math and advising on what could be written off and what couldn’t.
You’re reading too much into what the article is about and what my comment is about.
For example, I come to you this year and hand you all of my information. You ask me if it is all correct and if there’s anything else I might have that you can help me take advantage of. I say either, Yes. You do my taxes. If something doesn’t add up, then you ask me a question. If the math adds up, then the return is submitted.
That’s what you do. That’s what TurboTax does. That’s what H&R Block does.
Later, if the IRS comes to you and asks, did you do this return? Yes, based on the information I received from my client. Then the IRS goes to the client and your defense is.....I did the return based on the information I received. I’m not a real estate appraiser, home inspector, nor do I manage my clients assets, accounts or businesses. Client showed up with paperwork, I did the taxes.
It is nothing more than that. Unless, the CPA is/was the one telling/advising the client how to cheat. Or the client, in their defense, says that you tole them to do this or that.
My CPA required all bank statements and written explanations for many entries including receipts. He did not take my word for it. He was a tax attorney as well as an accountant. I’m sure Trump has similar representation.
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