Rich Responds - Part One
Art goes silent. He seems exhausted but relieved, as if he’s confessed to a great burden he’s been carrying... for two days. Rich leans back in his chair, props his elbows on the armrests and interlocks his fingers.
“Well, Art,” Rich begins. “That’s quite a story.”
Then you watch Rich as he applies his wisdom and experience to the situation of Art. And, being an accountant, you notice that Rich speaks in bullet point:
“Well, Art,” Rich begins. “That’s quite a story.”
Then you watch Rich as he applies his wisdom and experience to the situation of Art. And, being an accountant, you notice that Rich speaks in bullet point:
- You will not go to jail, even if it will improve your artistic career. The IRS is not out to punish people but to bring them into compliance and have them pay what they owe. You may face penalties if I turns out you owe – but we do not even know that yet. Relax. Sit in the massage chair.
- Our plan is to reconstruct your finances for the last two years as best we can. It will not be precise but at least we will be able to file, get you on the right (tax reporting and paying) path going forward.
- Do you have a copy of your last tax return, three years ago? (Note: I think we talked about explaining in the narrative that he had been an employee and then transitioned to independent contractor. Otherwise it is too extreme and unworkable.)
- What kind of records or numbers can you come up with for your income? Can you or did you get a statement from Katya? You must be able to do that.
- Do you have a separate bank account for your painting income?
- Do you have copies of your bank statements? I know it’s a long shot but that might shed a light on your business activities. (You have a business, you have income, you have income tax).
- We need to get a sense of how much you made from non-gallery sales. I suspect that will be harder than getting #’s from Katya.