Good Morning, I am a newbie day trader and I really need accounting advice. Don't want to get into trouble with the IRS! Can someone please recommend an accountant that they have used personally, and know to be legitmate? There is a lot of information out there and I want to get everything right! Thank you!!!!
You need to ask around like they did in the old days. If the same names comes up over and over, there is a good change you have a match. I've used a CPA since I was 18. Here is the one story I remember. My first CPA was starting to charge too much. I started interviewing others. I came across this one and I told him I will be interviewing him. He turned around and said he was interviewing me!! I was taken aback...Then I figured out his though process. He was looking for clients who had their books lined up in a row...Not scattered everywhere!! He was also looking for people who were not "pushing the envelope" with deductions. Too many deductions and too many audits, will get a bull's eye on a CPA's back. The CPA with a lot of audits go into the computers and pop out more questionable audits. He wanted to see my last two years of tax returned... And lastly...He wanted to know if I was going to pay him!! He wanted to not only know if I would pay him, but pay him on time. Was I going to question his bills? Did I have a history of paying my current (and past) CPAs on time. To sum it up...He didn't want a headache! Other CPAs love a challenge...Love to push the envelope (type A). Not this guy...Set it and forget it. We worked well together for about 15 years before he retired...
You brokerage and FINRA will keep you straight. Your brokerage 1099 will have all of the tax info that can be directly uploaded into tax s/w like Turbotax. You won't get into trouble with the IRS but you do need a good tax guy for strategy on tax efficiency assuming you are making tons from day trading, as a newbie.