Protect Your Client from Being Encumbered with His/Her Spouse’s Tax Debt

In case you are not aware, during July 2011, the Internal Revenue Service issued Notice 2011-70, which made a significant change to stipulations for individuals looking for spousal relief under IRC 6015(f).  This notice may help you protect your clients from liability for either underpayment or nonpayment of taxes caused by dishonesty by their spouses. …

Evaluating Law Practices Involved in a Divorce Matter (Part 1)

The following is an excerpt from “Income Reconstruction: A Guide to Discovering Unreported Income,” published by the American Institute of Certified Public Accountants. It provides insight into how a Forensic Accountant would trace nondisclosed income in one particular type of business. Overview of Law Practices:Reporting Income It is important to understand how law practices account…

Gross Cash Flow and Business Valuation Issues: Analyzing Perquisites (Part 2)

In some cases, it can be difficult to determine which expenses should be considered as personal or business. There are business owners who are particularly sophisticated in their understanding of financial accounting methods and who may intentionally conceal personal expenses while claiming them as ordinary and necessary business expenses. For example, in a recent case…

Legal Malpractice Case: Would Hiring a Forensic Accountant Cause a Quantifiable Better Result?

Fourth Appellate District: Michael O’Shea V. Susan F. Lindenberg, et al Presented by Ron J. Anfuso, CPA, ABV, CFF, CDFA, FABFA In a case for child support, after the court awarded O’Shea’s ex-wife what he believed was excessive child support, he filed a legal malpractice action. His most significant allegation of negligence was that Lindenberg…