wage transcript doesn't match CP2000 changes

[schirallicpa]

Taxpayer neglected to report gambling income on 2018 tax return.  The wage transcript clearly shows 3 W2Gs.  The CP2000 lists 2 W2Gs.  This is a $2000 difference. 

What would you do?

[Abby Normal]

2 hours ago, schirallicpa said:

What would you do?

Be honest. CP2000s often miss things, and I hate it because it makes responding more complicated.

[Sara EA]

I just took my annual ethics CPE today.  I now know what the answer is!  You do too, even if CPAs only have to take four hours of ethics every three years.  We EAs, being the most ethical of the professions, have to take two hours every single year.  (Or do we have to take more because we're the least ethical?)  Gets old fast.

 

[Margaret CPA in OH]

We only need 3 hours every 3 years, not 4.  But those can be intense hours depending on the instructor.  Well, when it is/was live instruction and the leader put you on the spot, made you think.  The online course is less intimidating but the answers still point to being honest and, well ethical.

[Max W]

Are you sure that two of the W-2G's weren't duplicated?

 

[Lion EA]

Know or should have know.

[Lee B]

4 hours ago, Sara EA said:

I just took my annual ethics CPE today.  I now know what the answer is!  You do too, even if CPAs only have to take four hours of ethics every three years.  We EAs, being the most ethical of the professions, have to take two hours every single year.  (Or do we have to take more because we're the least ethical?)  Gets old fast.

 

 

3 hours ago, Margaret CPA in OH said:

We only need 3 hours every 3 years, not 4.  But those can be intense hours depending on the instructor.  Well, when it is/was live instruction and the leader put you on the spot, made you think.  The online course is less intimidating but the answers still point to being honest and, well ethical.

I believe CPAs in Oregon are required to take 4 hours of Ethics every 2 years.

[jklcpa]

9 minutes ago, cbslee said:

I believe CPAs in Oregon are required to take 4 hours of Ethics every 2 years.

That is the requirement here too, 4 hrs every 2 yrs. 

[Margaret CPA in OH]

Interesting to learn the differences among the states for ethics requirements.  Are Ohioans more ethical, as in, we don't need no stinkin' ethics or at least not so often Given some of the challenges by some clients, it probably is not so bad to be reminded with some frequency.  Not to say some clients are unethical... /s

[Lee B]

Margaret,

Just so you know, your end of post quotes are well chosen. Thanks!

[Margaret CPA in OH]

Thanks. They do reflect strongly my beliefs.

[schirallicpa]

18 hours ago, Sara EA said:

I just took my annual ethics CPE today.  I now know what the answer is!  You do too, even if CPAs only have to take four hours of ethics every three years.  We EAs, being the most ethical of the professions, have to take two hours every single year.  (Or do we have to take more because we're the least ethical?)  Gets old fast.

 

I didn't know that you had to take more than CPAs.  Hmmmmm......I wonder why.  I guess the extra licensing fee with the state lets the CPA off the hook.

 

[schirallicpa]

Any way - I did the right thing and reported all three.  And honestly - she should have just paid the CP2000 notice.  It would have been cheaper.

 

[Abby Normal]

2 hours ago, schirallicpa said:

Any way - I did the right thing and reported all three.  And honestly - she should have just paid the CP2000 notice.  It would have been cheaper.

 

Well, in my experience, way more CP2000s are wrong than right.

[Sara EA]

schirallicpa, EAs have to take two hours of ethics annually because THE IRS SAYS SO.  Best ethics course I ever had was run by an IRS agent who began by saying she knew she was preaching to the choir.  The worst I ever had was run by Karen Hawkins, then head of the Office of Professional Responsibility, who hated tax preparers.  She spent the entire two hours reading Circular 230 to us, especially the juicy parts about monetary fines and sanctions.  Interestingly, the ethics courses for CPAs are not eligible for CPEs for EAs, and vice versa.  What do they teach you CPAs that they don't want EAs to know, and vice versa?

[Catherine]

27 minutes ago, Sara EA said:

Interestingly, the ethics courses for CPAs are not eligible for CPEs for EAs, and vice versa.  What do they teach you CPAs that they don't want EAs to know, and vice versa?

It would almost be worth sitting through the "other" kind, just to see!

[Catherine]

I try hard to look for ethics classes that aren't some iteration of Circular 230 over and over and over ad nauseam. Best one ever was an interactive class of "gray areas" where a situation was given, what would you do? What if this detail changed? What if instead of stating case this way, it was stated that way? What if as time went on and you had an investment (time, effort, sympathy) in the client's case, it edged in this direction? Where is the line that crosses from advocating for the client to colluding with the client, and how can you anticipate where it might be so as to watch for it?

It was excellent. Most of them are boring as spit, and not nearly as useful. I truly detest the classes (and especially the presenters) that assume we are adversaries and threaten with the horrible penalties that await.  Have sometimes felt those people should be publicly flogged.

[schirallicpa]

One of the ethics courses that I see over and over again is about Adelphia.  Adelphia was the cable company that went public and they got audited - of course - and they had a number of off-balance sheet holdings, and a number of transactions for personal purposes, and a number of fraudulent handlings of money.  It happened around the same time as Enron.  Anyway, Adelphia was located right over the hill from us, and the father that ultimately went to prison was absolutely loved by this community.  His children had taken over the financial side of the business and ran it amuck.  I know the side of the story as a local who knows the family but of course I see the unethical behavior from the SEC's and from a CPAs point of view.  It was really a hard blow to this area that struggles economically. At one time I had worked for an accounting firm that audited the local school district that Adelphia was located in and the school was able to make so many improvements to their school and really relied on that tax money.  And I had a lot of clients that owned Adelphia stock that became worthless.  It was quite a tragedy.

 

[joanmcq]

NV CPAs take 2 hours every year.  Since CPAs are licensed by the states, I guess different states have different requirements.