Fran, when you sit within spitting distance in a campmeeting during the begging stage and make some observations, you are not surprised that internal control could become a problem in business. Internal control in our personal lives is indicative to me that we do not accept the Ten Commandments as promises rather than prohibitions no matter what we say or how many times the teacher makes us write it or how many times we may co-author it for profit! My position has to be, whether I like it or not, that our internal feelings will be written all over our external conduct as others see us.
FYB and to allay any of your concerns, the following discussion is all about moral conduct rather than employment or investing:
Some see smoke while others demand fire. In business settings, I used smoke only for directions to fire. Allegations of fire by others may, in reality, be nothing but smoke. In business, there are unique ways for finding smoke which can lead to queries which make fire obvious. In re taxes here, many are hay-stacking for "specific items" when it may have been better for an agent to do a simple "source and application or "net worth."
Many may laugh from lack of experience just as some preachers may preach against a self-assessment tax system's depending upon "informants" to lend credence to that system of taxation about my allegation's to all that ever came into the confines of my public service. Depending upon the individual matters before me, I emphasized the fact that I was there to "help" them. You are invited to have a belly-laugh on that one, including all saints and preachers.
Would you think it appropriate for an Internal Revenue Agent to query a taxpayer about known errors discovered since filing? Much to the dismay of possibly some, this modus has worked many wonders. In fact, many times these disclosures are through workpapers prominently displayed for the agent's access or through professionals that were not involved in the preparation and filing.
I'm reminded of a matter where the wide open spaces did not visually display certain underground fixed-asset improvements to a shipyard. With the aid of engineering assistance, a number of different agents over an extended period, successfully recommended the capitalization of millions from ordinary expenses and cost of sales. The taxpayer used the completed-contracts method of accounting where they successfully worked their long-termed contracts to the hilt by tacking-on. Eventually, the conservative use of recognizing income and liberal use of deducting costs led them into a "deductible net-operating loss brick wall" due to the "back 3\forward 5" provisions of the then law. Due to this unique, yet not so rare, incident, the taxpayer attempted to show that both the taxpayer as well as the government were wrong in the methods of accounting which would have capitalized additional costs and expenses in earlier years to pull income into later years that would offset a "non-deductible net-operating loss carry-back or carry-forward which would be forever lost. This example is presented only to show that hidden conduct is not always obvious to the public, at first blush.
The employment of my skills were first attempted in the least labor-intensive manner for the concerned parties. I remember Johnny's Army Store on which the Schedule C attached to the tax return appeared correct in all respects. The nature of the business, the customer base, and locations spoke to me about audit methods. That being the case, I elected to simply add 12 total deposits from the applicable bank statements for the tax year. The results were potentially shocking yet not conclusive as an indicator. I found an optimum time and atmosphere to query Johnny in a non-accusitive manner about any possible difference that could exist between total bank deposits and sales reported such as deposits of funds from loans or re-deposits of bad checks or similar amounts. Johnny didn't appear to care to try to explain that he didn't have a need to borrow an funds or to re-deposit any type of transactions in his explanations. He simply cut to the chase and stated, "It could be caused where I "cut" sales too much." I didn't spook the taxpayer as that was left to the IRS reprsentative from the Criminal Division which caused Johnny to pass out while we three were seated on a bench in the shoe department. I'll not get into the grooming of a net-worth, source and applications, or a specific adjustments type exam which was finally and adequately preformed in a reasonable time frame and resolved to the satisfaction of all concerned. During the settlement phase, Johnny queried how he could pay the deficiency which included additional tax, applicable penalties, and interest. Johnny's wife suggested to him that he just give the government the d... stores. Johnny never dealt with me as his enemy and, at the end, displayed a humble rather than antagonistic attitude far after any further changes would be attempted.
As an investor, I am reminded of the former president of a bankrupt corporation that made recent history. While an investor, I read where the president divorced his wife and later married an employee working in the investor relations section of his employer where common travel would not be unusual. A later criminal conviction and effective term for life was the final results where even some professionals saw was not warranted under the facts and circumstances where the state attorney general that maneuvered the prosecution of the matter was caught up in a prostitution matter in Washington, DC and resigned with no apparent jail term consequence. But, that is life! Don't be concerned with my going to sleep on investments no more than appurtant morals about my investments! I entered that one at $14s and exited at $46s only to miss the $50s and $60s like a favorite cousin. I was a day-trader on that one at $2s where a buy order was filled at $2 when the S&P downgraded the bonds to junk-status that sent it to $1.85 where I sensed trouble. Fortunately, I was not concerned with the morals of other on message boards in re independent ministries to the extent my DSL was not communicative minute by minute for a company conference call which took the second leg up to exit me at $2.15 which was my last trade ever for that entity for its short remaining history until bankrupcy after many were voodooed, much to their dismay through trading prices in the pennies!
I still look for opportunities to help my neighbors and church brethren. Some have come by this week to pick Florida Giant Speckled butterbeans which are loaded but not fully developed. I didn't send them away empty-handed. I suggested they get all the tomatos, okra, and bell pepper they needed. They left some for other neighbors and I presented them with a frozen package less than a month old for their enjoyment. I don't remember whether they thanked me or not as I am not the type like my spouse who has always tried to teach morals in actions as well as in words. I could have chided my neighbor that I warned him to put a tablespoon of epsom salts under his tomatos when he planted them, but, I didn't. I could have reminded him of the waterpump for which he expected pay, but, I didn't. Hopefully, I have proven to myself that a merry heart doeth good like a medicine.
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Topic: Approved SDA Media Outlet Publishes an Article about the IRS Investigation (Read 175036 times)
