Tax Question

[hotcoffee]

I really don't know the answer to this question... I'm not even sure how they should phrase the question to ask the accountant.... but someone asked me so I told them I would bring it to SOMD Online and see what input y'all would offer...

A Maryland Retail business may have overstated their inventory by as much as $150,000.00 last year.

Generally, what impact [if any] would that have on their fed and state corp income tax due?

Thanks in advance....

 

[ProfMoneyWise]

I really don't know the answer to this question... I'm not even sure how they should phrase the question to ask the accountant.... but someone asked me so I told them I would bring it to SOMD Online and see what input y'all would offer...

A Maryland Retail business may have overstated their inventory by as much as $150,000.00 last year.

Generally, what impact [if any] would that have on their fed and state corp income tax due?

Thanks in advance....

Consult a tax professional as soon as possible. Be very careful about advice or opinion given by anyone not fully qualified to give it when it comes State or Federal Tax issues.

 

[ProfMoneyWise]

Consult a tax professional as soon as possible. Be very careful about advice or opinion given by anyone not fully qualified to give it when it comes State or Federal Tax issues.

Meant to add if you type in "overstating inventory" in a search engine you will get a sense of the urgency with whch to relay the advice to contact a tax professional.

 

[hotcoffee]

Consult a tax professional as soon as possible. Be very careful about advice or opinion given by anyone not fully qualified to give it when it comes State or Federal Tax issues.

I already gave them that advice.

 

[onebdzee]

Inventory(whether it be actual or predicted) is considered an asset and is subtracted from the business income....if you overstate it, when you go back and correct the error(file an amended tax form) you will owe the federal and state government more taxes....plus penalties and interest(maybe)

Tell your friend to consult a tax adviser immediately to file the correct forms and they may be able to get around paying to much

WOW!...I did learn something in Accounting class

 

[hotcoffee]

Inventory(whether it be actual or predicted) is considered an asset and is subtracted from the business income....if you overstate it, when you go back and correct the error(file an amended tax form) you will owe the federal and state government more taxes....plus penalties and interest(maybe)

Tell your friend to consult a tax adviser immediately to file the correct forms and they may be able to get around paying to much

WOW!...I did learn something in Accounting class

We both must have... I told them exactly the same thing... but then I agreed to get more input....

Thanks so much everyone.