I owned a corp. for 12 years. Who beside my CPA (who for tax reasons showed lowest income possible) qualifies as an expert and can assist in proving I made a very good living?

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• I have made it a point to employ people in areas I do not understand. Thats why a CPA handles my and my companies taxs. The errors that were found in my tax return (which I couldn't understand if I had to) were caught in an IRS audit requested by my exwife's attorney. I don't know who failed to send what but I had overpaid FUTA taxes and ended up with a $3500 refund. My tax returns have had to be up to date in order to bid on and be awarded government contracts. Cheating is not the issue.

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  by exhausted on December 14th, 2006

• Then if your taxes were being properly paid, why is there any question about your ability to demonstrate substantial income? Just show the tax returns.

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  by Stableboy on December 14th, 2006

• As it has been explained to me, many itms can be legally writen off on a corporate return that can not be written off on a personal return. My personal return takes the profit from my corporate return and more legal deductions are applied. Anyone who is self employed goes through this. In most cases showing the paper trail proving this is enough. In a lawsuit live people, who can be cross examined, not just paper records are required. I.e. "list the address and individuals who you claim can verify your income."
  I am concerned that a cpa looks and sounds foolish saying "his taxable income doesn't reflect his actual income". Maybe I'm wrong. But it seems there must be some way of honestly and fairly answereing the question so the truth can be understood without a defense lawyer twisting it.

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  by exhausted on December 14th, 2006

• Ah, now it's becoming clearer, thanks for the details. First -- many of the perks you received from the corporation are questionable from a tax law standpoint. I've also run a corporation and know quite a bit of the rules. So the corp books could be exposed to show who paid for the house or whatever, and that would demonstrate that you lived well -- but it would also advertise to the IRS that these deductions were questionable. So if you're not going to expose the corp books, then you have your personal tax returns, bank statements, testimonials from anyone you can find, etc. -- but it's a good bet the defense lawyer is going to attack the ABSENCE of the corp books to impugn your integrity, and that is likely to be unpleasant, although probably not crucial.

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  by Stableboy on December 14th, 2006

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• I am invoved in litigation and being asked to show proof of my income over the last several years. Relying only on tax returns my net income after my cpa applies legal "writeoffs" shows very little taxable income (5-10K/yr). I had the same problem refinacing my home several years ago. Paperwork showing everything that was paid by my company was enough to satisfy the bank that my income was 75K/yr and allow me to refinance. The legal system wants live people they can depose to verify this. Its a catch 22 situation. I own 6 paid for vehichles, property worth $500,000 pay my and my kids bills on time and own my company with $1,000,000/yr in sales. There must be something besides a tax return and it's prepaparer that can accuratley reflect my "income".

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  by exhausted on December 14th, 2006