Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have a client who I did s tax return. He has a business…

Customer Question
I have a client who...
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: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 hours by:
3/2/2016
Tax Professional: Barbara, Enrolled Agent replied 2 years ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,165
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

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,

Barb

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 2 years 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,

Barb

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,165
6,165 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,564 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
In preparation for MN income tax return, we noticed a
In preparation for MN income tax return, we noticed a discrepancy and would like to receive a transcript for the 2016 income tax return for MN. We have a POA on both spouses, thanks, … read more
Barbara
Barbara
Enrolled Agent
6,165 satisfied customers
I am sole proprietor, new contracting business. I client
I am sole proprietor, new contracting business. I client wants me to deliver on a project that includes payment for my time but also funds for hall rental, food, travel for participants. They want to … read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I have a single-member/sole proprietor LLC Company in my
Hello I have a single-member/sole proprietor LLC Company in my name. I am interested in investing $50,000 in a startup company. Can I invest in this Company through my LLC? or should I invest personal… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,045 satisfied customers
I'm selling a business as a sole proprietor. I need advice
I'm selling a business as a sole proprietor. I need advice about asset allocation … read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,050 satisfied customers
It's a business/tax law question. I am a sole proprietor
It's a business/tax law question. I am a sole proprietor business owner. I am in negotiations to sell my business. Buyer wants to pay 1 lump sum (6 figures) but if I take it all at once, it is going t… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,045 satisfied customers
When should I elect S-corporation? I am a sole proprietor
When should I elect S-corporation? I am a sole proprietor (single member LLC). Looks like there is benefit to be an S-corp since S corp net income isn't taxed for self employment taxes.… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
I am preparing a 1040 return for a person who receives a K-1
I am preparing a 1040 return for a person who receives a K-1 from a partnership that he materially participates. On the K-1, the partnership indicates that the partner contributed $18,000.00 to a 401(… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
I'm preparing someone's tax return that needs to be mailed.
I'm preparing someone's tax return that needs to be mailed. They're out of the country. Can they e-sign and I mail it? I know they can e-sign e-filed returns, but not sure about paper returns.… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,050 satisfied customers
We have a small business ( sole proprietor), my tax advisor
We have a small business ( sole proprietor), my tax advisor at HR&BLOCKs doesn't know, where to report Keogh contributions made for myself and for my employee wife. My question is, where to report it … read more
emc011075
emc011075
Tax advisor and Enrolled Agent
Bachelor\u0027s Degree
3,033 satisfied customers
Last year I changed my business from a sole proprietor to an
Last year I changed my business from a sole proprietor to an LLC complete with a new EIN, I am using turbo tax to file my taxes but how do I correctly show this change?… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,050 satisfied customers
I own a small business as sole proprietor. Is there a way to
I own a small business as sole proprietor. Is there a way to separate my business income tax from my personal income tax … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
111 satisfied customers
If I am a sole proprietor is it better for me to be in
If I am a sole proprietor is it better for me to be in payroll? Or do an owners draw - owner equity?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,377 satisfied customers
I prepared a c-corp trucking company income tax return for
I prepared a c-corp trucking company income tax return for 2015 and 2016 They paid their employee drivers per diem for days away All the records are good but the IRS says I should have only deducted 8… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,050 satisfied customers
OH State income tax - Schedule A - personal tax return line
OH State income tax - Schedule A - personal tax return line 31. 1. What is the difference between "survivorship benefits" and "pension continuation benefits"? * New client for me. * OH resident * Spou… read more
Barbara
Barbara
Enrolled Agent
6,165 satisfied customers
I am a sole proprietor, in business of real estate
I am a sole proprietor, in business of real estate investments. I do hard money lending and investing limited partnerships. Therefore I file schedule C to report the interest on loans even though they… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
132 satisfied customers
I'm a sole proprietor in - wanted to plan for taxes and know
I'm a sole proprietor in KY- wanted to plan for taxes and know where to send taxes in.1. Which am I taxed on- gross or net profit?2. How much tax do I pay if my net profit is $1150 per month? How much… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,050 satisfied customers
A CPA prepared a filed a personal return last april. There
A CPA prepared a filed a personal return last april. There was a NYS and NYC refund due. The check never was received. The CPA is not helping procure a replacement check, whom should the person call o… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,050 satisfied customers
Changing being taxed as an LLC sole proprietor to an LLC
changing being taxed as an LLC sole proprietor to an LLC taxed as an S-corp, do they need to file Form 8832 or Form 2553 or both?If both, in what order?THANKS… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x