Tracy Coenen discusses the early stages of a financial investigation related to a divorce. When couples are divorcing, it is not unusual for a business to appear to decline. Tracy talks about the types of things she looks at to determine whether there is evidence of hidden income or other manipulation of the finances.
If a court case doesn’t settle, the trial is obviously the most important part of the case. As an expert witness, you want to think about the possibility of trial throughout your work.
When the IRS believes a taxpayer has unreported income, they will use alternative methods to attempt to determine the true income. One of those methods is the Expenditures Method. Tracy Coenen explains the basic methodology in this video. Note that this method of calculating income can be used in a variety of cases that involve allegations of hidden income including divorce, money laundering, and income tax fraud.
In divorce and child support matters, participants make claims about their income, but the documents often show something different. Memphis divorce lawyer Miles Mason explains the difference between claimed income and documented income.
Do you think it’s only the “bad” people who do bad things in multi-level marketing? Those who frontload new recruits, dial for dollars at the end of the month (i.e. get people to order products they don’t need), talk only about their highest commission check, lie about how profitable the MLM is for them, or hide the debt they incurred via their MLM?
Unfortunately, these problems are systemic in multi-level marketing. These are the things that must be done to get to the upper levels and to stay there. What about those “national sales directors” or “diamond executives” or “founders sapphires”??? They’ve just done more frontloading and general deception. They all lie. It is how things are done in MLM.
Listen to this former Mary Kay sales director, who was only a step away from becoming an national sales director when she walked away. On ABC’s 20/20, she explained how her “success” was at the expense of other women.
If you were searching for financial statement fraud, what would you look for? Tracy talks about some of the basic/common signs you might see if Tracy Coenen teaches about some basic signs of financial statement fraud.
In a past appearance on CNBC’s On the Money, Tracy Coenen talked about how consumers could protect themselves from business opportunity scams and multi-level marketing (MLM) schemes. MLMs parade themselves around as business opportunities, but they are nothing more than elaborate pyramid schemes that swindle millions of consumers each year.
Despite all the warnings about tax scams, consumers are still falling victim to these types of fraud. Tracy Coenen talks on CNBC about the top five tax scams that consumers should be aware of. Read More
Below is a clip of a portion of a video I did on accounting services in divorce and family law cases. I discuss the work that a CPA can do in divorce cases.
What documents must be obtained in a divorce proceeding when your forensic accountant needs to evaluate and investigate the income of the parties? In the below video, Tracy Coenen lists some of the basic documents that are needed to analyze wages, self-employment income, and investment income.