A new client came in needing a financial statement on his corporation because his previous accountant was not a CPA, so they were not licensed to do this. During the process of due diligence, it come to our attention that the client had been reporting as an “Investor” when he should have been a “Mark to Market” trader. The prior accountant was limiting stock market losses to $3,000 per year when losses should have been 100% deducted.
The result: A tax savings of over $100k recovered on amendments to returns.