Make sure you also file Form 14157-A along with the standard complaint form! I went through something similar (though not as extreme) and filing both forms got my case assigned to the Return Preparer Office for investigation. My fraudulent preparer ended up losing his PTIN and facing penalties. Also, document EVERYTHING. Save every email, text message, and piece of paper related to this preparer. Take screenshots of any online communications before he can delete them. Keep receipts showing what you paid him. The more documentation you have showing you were misled, the better position you'll be in.

You definitely need to look into innocent spouse relief! If most of the fraudulent deductions were on your husband's business, you might qualify even though you filed joint returns. Check out IRS Form 8857. This saved my sister thousands when her ex-husband's business returns were audited and they found all kinds of improper deductions she knew nothing about.

Have you checked your actual W-4 form on file? Sometimes companies make mistakes with the paperwork. My employer once had me filed incorrectly which caused weird withholding patterns. You should request to see your actual W-4 on file and make sure it matches what you intended to submit. Also, when you claimed exempt, did you properly fill out a new W-4 form or just ask payroll to make the change? There's a specific process for claiming exempt status that requires a proper form submission.

Did the extra shifts push you into a higher tax bracket maybe? Sometimes when you suddenly earn a lot more in one pay period, the withholding system thinks your annual salary jumped up permanently and calculates taxes based on that higher projected annual income.

I handle this in Zoho Expense by creating a recurring expense for my cell phone. I upload the full bill but then enter only 50% of my line's cost as the expense amount. In the notes section, I document my calculation (total bill, my portion, business percentage). This approach has worked well for me for 3 years and survived a small business audit. The key is consistency and documentation.

Has anyone used Zoho Analytics alongside Expense for tracking these split business/personal costs over time? I'm trying to see patterns in my business usage but finding it cumbersome to track the splits.

Another thing nobody mentioned yet is that sometimes these ultra-wealthy people use their company perks to reduce personal expenses, which is another form of tax avoidance. Like when a company pays for "business travel" on a private jet, security personnel, housing for "business purposes," etc. These are business expenses for the company (tax deductible) but provide personal benefit to the executive without counting as taxable income. Musk for example has used company resources for personal security and travel - completely legal if structured properly, but effectively gives him benefits that would otherwise require taxable income.

Just to add another layer to this conversation - one thing the "buy, borrow, die" strategy relies on is the stepped-up basis rule at death. This means that when someone inherits assets, the cost basis resets to the market value at the time of inheritance. Example: If Musk bought Tesla stock at $10 and it's worth $1000 when he dies, normally selling would trigger capital gains tax on the $990 profit. But his heirs get a stepped-up basis to $1000, so if they sell at $1000, they pay ZERO capital gains tax on all that appreciation. This is why super wealthy people can borrow against assets their whole lives, never sell, and then pass enormous wealth to the next generation without anyone ever paying capital gains tax on decades of appreciation. It's completely legal but definitely a huge advantage that most average people can't access.

10 This might be industry-specific, but in construction you should absolutely be deducting those hotel expenses for your crew at 100%. I've been in commercial construction for 20+ years and my accountant confirmed this is standard practice and fully allowed. For the international expansion, make sure you're keeping VERY detailed records. Note who you met with, what was discussed, take photos of potential sites, etc. The more documentation you have that this was a legitimate business exploration and not a vacation, the better position you'll be in if audited.

23 Has anyone used TurboTax Self-Employed for their construction business? I'm wondering if it would flag these types of deductions or help document them properly.