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More client service than the law allows

February 08, 2010

You can sell your skills to your clients, but you can't sell them deductions:

For no legitimate business purpose, Loeser's clients were advised to forward funds from their businesses to two corporations Loeser controlled. The corporations then rebated the funds to his clients. Loeser prepared the clients' books and business tax returns expensing and deducting the entire amounts that were paid to the corporations.

The IRS alleged Loeser violated Circular 230 by giving false or misleading information to the Department of Treasury and the IRS.

Jack Townsend, noting that the IRS suspended Mr. Loeser, a CPA, from IRS practice for 12 months, hints that the suspension would be a great result for the practitioner under the circumstances. Peter Pappas has more.