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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3780
Experience:  20+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I have a client who I did s tax return. He has a business

Customer Question

I have a client who I did his tax return for 2015. He has a business that grossed about 125,000 last year. He was running it as a sole proprietor with a business account opened in Oct 2015. He has had his current business since January of 2015. But he did not have a separate business account until October. He went for a small business loan to a company called National Business Capital and they say they cannot loan him money because business incoming funds do not go direct to his business account. He is still taking most of his incoming funds into his personal account and transferring them to his business. He said the company said they might give him a loan if he could get a letter from the bank saying his personal account receives the business income and he is a sole proprietor and the accounts are co-mingled. The bank looked at him blankly when he asked for such a letter and said they would not do it. He asked me if I would be willing to look at his bank records and write write him such a letter stating as his enrolled agent his personal account has been receiving his business income and the accounts are co-mingled. If it is true that his accounts are co-mingled and I write such a letter, am I exposing myself to any legal risk. Is there a better solution? It IS true his accounts are co-mingled. He would like to get a loan and I assume he has good reason. I would like to help him out. But I have NO idea what I am exposing myself to by writing such a letter.
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

If your client has requested that you prepare a letter stating that his accounts were commingled from January through October, 2015, you are basically stating what you know to be true after thorough examination of his bank records because of your knowledge and expertise. My advice would be to have your client sign a "letter of engagement" for you to prepare the letter that he has requested.

Please let me know if you require further information or clarification.

Thank you and best regards,


Expert:  Barbara replied 1 year ago.

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.

Best regards,