A.M. Golden Accountancy Corporation

What is Forensic Accounting?

admin — Thu, 25 Jun 2009 17:05:34 +0000

Forensic accounting is accounting that is suitable for legal review and court, with conclusions that have been arrived at with scientific methodologies. Forensic accounting is extremely thorough and complete so that it is sustainable in an adversarial legal proceeding, offering the highest level of assurance.

Forensic accountants are called upon to play important preemptive roles, offering independent assurance in audit committee advisory services, merger and underwriting due diligence, investment analyst research, and enterprise risk management.

The specialization of forensic accounting demands a standard of professionalism that begins with the obligation of CPAs, but goes farther in demanding independent and objective reporting of economic transactions.

When Do I Need a Forensic Accountant?

Divorce
Business Valuation
Lawsuits
Mergers & Acquisitions
Risk Management
Estate Planning
Legal Settlements
Income Taxes
Audits
Investment Analysis
Due Diligence

Forensic accounting focuses on the evidence of economic transactions and whether or not they were reported within an accounting system. Forensic accountants detect and interpret the evidences of non-fraudulent and fraudulent facts introduced into the records of an accounting system and the effects upon the accounts and inventories. Forensic accounts utilize cause and effect analysis. For example, when the forensic accountant discovers deception and fraud, he will look for the monetary effects within the accounting system.

Certain SEC Rules, including some related to the Sarbanes-Oxley Act, provide CPAs with a powerful tool which makes it unlawful to mislead “any independent public or certified public accountant” in a variety of engagement situations.

Forensic Accounting Services

Mr. Al Golden specializes in providing litigation support, expert witness, and forensic accounting, income and estate taxation, comprehensive business valuation, complete CFO and controller services. Mr. Al Golden is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913. If you’d prefer, you may also send an email: al@amgolden.com

How to Decrease Your Taxes with Charitable Tax Deductions

admin — Thu, 25 Jun 2009 17:00:52 +0000

As Benjamin Franklin knew, nothing in life is certain but death and taxes. We all have to pay them, but there are legal methods for minimizing your payout to the government.

Learn to recoup tax losses and put that money back in your pocket - where it belongs. Money and property donations to charity are tax deductible expenses. These donations can reduce your taxable income and lower your tax bill. However, there are specific guidelines that need to be adhered to:

Rules for Claiming the Charitable Contribution Deduction

Your gift of cash or property must meet certain criteria in order to be tax-deductible.

Claim your tax deduction on Form 1040, Schedule A. For 2008, this is found on Lines 16through 19 on Schedule A.
You must actually donate cash or property. A pledge or promise to donate is not deductible until you actually pay.
You must contribute to a qualified tax-exempt organization. Charities will let you know if they have received their 501(c) (3) tax-exempt status. Some organizations are not required to obtain 501(c) (3) status from the IRS, including: churches and other religious organizations.
You must itemize.
You must meet record keeping requirements. This includes saving canceled checks, acknowledgment letters from the charity, and appraisals for donated property.

Rules for Monetary Contributions

You must keep written records of all cash donations: on a ledger, in a day planner, etc.
You must have supporting documentation for donations of $250 or more.
Your records must indicate the name of the charitable organization, the date of your contribution, and the amount your contribution.
This new record keeping requirement took effect beginning with the 2007 tax year.

Rules for Property Contributions

You must make an assessment of the fair market value of the property you contribute.
You must attach IRS Form 8283 if your total non-cash contribution exceeds $500.
If you contribute a car, truck, boat, airplane, or other vehicle, and the vehicle is worth more than $500, you must received a written acknowledgement from the non-profit before you can claim a tax deduction.
If you contribute property worth more than $5,000, you must obtain a written appraisal of the property’s fair market value.

Limits on Charitable Deductions

There are limits specific to charitable contributions, and there are general limits on itemized deductions. The following are general guidelines:

Deduct cash contributions in full up to 50% of your adjusted gross income.
Deduct property contributions in full up to 30% of your adjusted gross income.
Deduct contributions of appreciated capital gains assets in full up to 20% of your adjusted gross income.
Charitable contributions in excess of these limits can be carried over to the following tax year. Then, the excess contributions can be carried over for a maximum of five years.

Contributions that are NOT Tax Deductible

Political parties, political campaigns, or political action committees.
Contributions given to individual people.
Fees or dues paid to professional associations.
Contributions to labor unions, chambers of commerce, or business associations.
Contributions to for-profit schools and hospitals.
Contributions to foreign governments.
Fines or penalties paid to local or state governments.
The value of your time for services rendered to a non-profit.

The above guidelines are general advice. To examine your tax needs, and see which other tax deductions can be applied to your tax liability, please meet directly with a professional tax planner.

Learn More About Charitable Tax Deductions

Mr. Al Golden specializes in providing income and estate taxation, comprehensive business valuation, complete CFO and controller services, litigation support, expert witness, and forensic accounting. Mr. Al Golden is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

When Is It Too Late To Protect Assets?

admin — Tue, 16 Jun 2009 17:07:11 +0000

Unfortunately, for many people their interest in asset protection is simply too late. If you wait until you have problems, it will probably be too late.

To be effective, asset protection should be done before you get into financial trouble and especially before you enter into any personal guarantees, such as guarantee to a lender for a loan.

Engage in asset protection planning, before:

Being sued or getting involved in litigation.
Filling for bankruptcy.
Going through a divorce.
Being foreclosed upon.
Personal adverse economic conditions.
Attempting to put assets out of reach of creditors.

If you are in financial trouble now and just starting to think about asset protection, you may be too late.

Is it too late for me?

If you suspect that you might be sued, but you have not yet been sued or even received a demand letter from the plaintiff’s attorney, you are not too late to do asset protection planning if the claim has not already arisen. A claim is a circumstance or event that could give rise to liability.

The fraudulent transfer and fraudulent conversion laws do not look at lawsuits or judgments, but instead look at when a claim arose.

What is the time-frame for moving assets?

Any transfer or conversion that was made within the last four years might be targeted by a creditor to be set aside. The Statute of Limitations for fraudulent transfers and conversions is usually around four years, although each state will have its own variations.

Certain laws will nullify gifts and transactions that are meant to put assets out of the reach of creditors, and will limit a debtor’s attempts to put their money into exempt assets.

What will happen if I attempt to hide assets after a claim has arisen?

There can be serious consequences if you attempt to hide assets after a claim has arisen. If you engage in asset protection planning after a significant claim arises or after you have become illiquid, then not only will any transfers that you make be at risk of being deemed to be fraudulent transfers, but you also may risk a denial of discharge if you later find yourself in bankruptcy, voluntary or involuntary.

One thing is certain if you are in trouble or financially slipping, the more quickly that you speak with an experienced asset protection specialist, the better off you will be. In addition to bankruptcy counsel, some attorneys specialize in non-bankruptcy “workouts” with creditors and “wind-downs” of distressed businesses.

Mr. Al Golden specializes in providing asset protection planning, litigation support, expert witness, forensic accounting, income and estate taxation, comprehensive business valuation, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners. Mr. Golden is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

Divorce & Marital Assets

admin — Tue, 09 Jun 2009 16:44:17 +0000

Hiding marital assets during the process of a divorce is illegal. The law seems simple – that one party cannot hide assets to the detriment of another. Nevertheless, some soon-to-be-ex spouses hide marital assets during the process of a divorce.

In the divorce case of Donahue v. Donahue (1984), Mr. Donahue attempted to conceal bonds with substantial monetary value by leaving them with his girlfriend. Mr. Donahue’s parents, who had given him the bonds, also tried to hide them from Mrs. Donahue and the trial court. In the ruling, the court included the bonds in the marital estate, and Mrs. Donahue received her fair portion of the bonds.

Courts are usually harsh toward clients who are uncooperative or behaving deviously. However, the burden to discover hidden assets is on the spouse who is claiming the other party is hiding assets.

Finding hidden assets, unreported or under-reported income, or concealed or undisclosed property is challenging. Looking for hidden assets is frustrating, difficult, complex, and confusing. Finding all of the assets becomes a matter of asking the right questions. Hidden assets are frequently placed in the hands of third parties or behind false documents.

Four general tests to determine if an asset is part of the marital estate:

Was it acquired during the marriage? The court determines the beginning and ending dates for the period of marriage. The ending date for shared marital assets is often the date of separation.
Is the asset separate property? Most pre-marital accumulations and monies are excluded from the marital estate, but consider whether there are extenuating circumstances justifying inclusion in the marital estate. Did one spouse contribute to the acquisition, improvement, or accumulation of the separate property?
Is the asset a gift or inheritance? Many gifts are considered marital property unless there was a written agreement stating that it was not such.
Does the asset really belong to a third party, or is it an asset of the marital parties?

What type of expert should be hired to uncover and evaluate the actual worth of your spouse’s hidden assets?

Mr. Al Golden specializes in providing litigation support, expert witness, forensic accounting, income and estate taxation, comprehensive business valuation, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

Ex-Spouse’s Assets

admin — Tue, 09 Jun 2009 16:23:55 +0000

Are you divorced, but have recently discovered your ex-spouses hidden assets? Did your spouse hide assets from you during the divorce proceedings so that you would be left with pennies compared to his or her millions?

Have comfort, the law is on your side. If you have discovered assets of your ex-spouses that he or she hid during your divorce from each other, you can submit your findings to the court and re-open the discussion of the division of marital assets. The following divorce cases illustrate this point:

In Wiand v. Wiand (1987), the court found in favor of Mrs. Wiand, stating that Mr. Wiand had frustrated her efforts to obtain discovery of his assets and his net worth. Mr. Wiand had repeatedly violated the court’s orders for support, discovery, and injunctive relief, and had utilized his brother to hide marital assets, in order to keep them hidden from Mrs. Wiand. This was an important finding because the court held the third-party brother responsible for hiding assets on behalf of his brother.

Then, two years after the trial and the division of the marital estate, Mrs. Wiand found new assets that Mr. Wiand had hidden during their divorce. She filed a new complaint against her former husband, seeking damages based on: fraud, misrepresentation, interference with advantageous relationships, conversion, and violation of court orders. Five years later, the appellate court ruled that such assets (discovered after the divorce) may become the subject of future (post-judgment) discovery and proceedings. The court awarded Mrs. Wiand her portion of the martial assets that had been hidden years prior, during the divorce.

In Sands v. Sands (1993), Mr. Sands deliberately hid assets from his wife during the divorce trial period. When his assets were found after the trial, the court reassessed the property division in a new trial. The court awarded Mrs. Sands all of the previously-hidden assets – her portion and Mr. Sands’ portion.
 If one spouse does not reveal an asset during divorce proceedings, it can be subject to future discovery and division as part of the marital property. If newly discovered evidence shows one spouse undervalued the marital estate, or hid assets, the wronged spouse has a basis to start a new lawsuit.

What kind of expert should be hired to help you uncover hidden assets and evaluation their worth?

A.M. Golden Accountancy Corporation specializes in providing divorce and matrimonial litigation support, including discovering hidden assets, valuing assets, and the distribution of assets. A.M. Golden focuses on forensic accounting techniques to uncover hidden assets, over stated expenses, valuation of marital assets such as closely held business and stock options, tax consequences of divorce and distribution of assets. Mr. Al Golden is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

Madoff’s Investment Scandal

admin — Tue, 09 Jun 2009 16:19:46 +0000

Former NASDAQ chairman Bernard L. Madoff pleaded guilty in March 2009 to 11 felonies and massive fraud. Prosecutors estimate the size of the fraud to be $64.8 billion, the largest financial fraud in U.S. history, based on the amounts in the accounts of Madoff’s 4,800 clients. Madoff remains locked in a lower Manhattan jail cell pending his June 29th sentencing. The 71-year-old faces 150 years behind bars as well as restitution of up to $170 billion.

Madoff ran the wealthy investment arm of his business, Bernard L. Madoff Investment Securities LLC, secretly and separately from the main trading and market-making floor of his offices, with records kept “under lock and key.”

Madoff admitted to having run a “Ponzi” scheme. For years Madoff and his investment firm had been paying returns to certain investors out of the principal received from other, different investors. Client statements in stock holdings were fictitious - no stocks were ever purchased since the scheme began in the 1980s.

What is a Ponzi Scheme? A Ponzi scheme, named after the swindler Charles Ponzi, is a fraudulent investment operation that pays abnormally high returns to investors paid from money put into the scheme by subsequent investors, rather from real profits generated by share trading. Madoff’s fraud is far greater than past Ponzi schemes and easily the greatest swindle pulled off by one man.

The FBI alleges that Madoff “paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of billions of dollars.”

Some investors, journalists, and economists have questioned Madoff’s statement that he alone is responsible for the large-scale operation. Investigators are looking to determine if there were others involved in the scheme.

Professional Financial & Investment Evaluations

If you are concerned, or have suspicions about an investment deal, you can determine its accuracy by hiring a professional financial evaluator.

Mr. Al Golden specializes in evaluating investments to protect businesses and individuals against possible frauds. He also provides CFO and Controller Services, forensic accounting, comprehensive business valuation, and forensic accounting. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

Investors Who Lost Money in Madoff Scam

admin — Tue, 09 Jun 2009 16:16:56 +0000

Wall Street legend Bernard L. Madoff pleaded guilty to 11 felonies and the largest financial fraud in U.S. history. He faces 150 years behind bars as well as restitution of up to $170 billion.

Thousands of investors in Bernard L. Madoff Securities LLC have lost a total up to $64.8 billion. Reportedly, Madoff had a total of 4,800 clients. Until the end of 2008, Madoff ran the wealthy investment arm of his business, Bernard L Madoff Investment Securities LLC, secretly and separately from the main trading and market-making floor of his offices, with records kept “under lock and key.”

The FBI alleges that Madoff “paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of billions of dollars.”

Recent court documents list names of Bernard Madoff’s clients. The 162-page client list filed in U.S. Bankruptcy Court in Manhattan was made public on February 4, 2009.

Many of Madoff’s investors came from the wealthy enclaves Palm Beach, Florida and Long Island, New York, where people had invested billions of dollars in Madoff’s firm for decades.

The list includes hundreds of trust funds, charities, pension plans and unions, as well as Madoff’s own grandchildren. Madoff served on the boards of nonprofit institutions, many of which entrusted his firm with their endowments. Below is a partial listing.

List of Investors in Bernard L. Madoff Securities, LLC:

Sandy Koufax (baseball player)
Larry Silverstein (Ground Zero developer)
The estate of late John Denver (singer)
John Malkovich (actor)
Tim Teufel (former second baseman for the Mets)
Kevin Bacon and Kyra Sedgwick (actors)
Alicia Koplowitz (ranks 198 on Forbes’ World’s Billionaires 2008)
Ruth and Carl J. Shapiro (founded Kay Windsor, Inc., one of the largest women’s apparel companies in the country.)
Ira Rennert (Rennert’s Hampton’s home cost an estimated $100 million to build. The 100,000 square feet house is on a 68 acre beachfront lot, has 29 bedrooms, 2 bowling alleys, and 39 bathrooms.)
Marion and Elie Wiesel (Nobel Laureate, Holocaust survivor, writer, political activist.)
SAR Academy (New York)
Dorset County Pension Fund
Jerome Fisher (Nine West founder)
Town of Fairfield, Connecticut
Mortimer B. Zuckerman Charitable Remainder Trust (New York Daily News owner’s charity)
Madoff Family Foundation
Los Angeles Jewish Community Foundation
Massachusetts Pension Reserves Investment Management
Korea Teachers Pension
Hampshire County Council
The Ramaz School
Stony Brook University Foundation
New York Law School
Norman Braman (former Philadelphia Eagles owner)
Leonard Feinstein (Bed Bath & Beyond co-founder)
Avram and Carol Goldberg (Stop n Shop founders)
Hillcrest Country Club members (St. Paul, MN)
Henry Kaufman (former chief economist at Salomon Brothers)
Eric Roth (screenwriter who won the Oscar for Best Adapted Screenplay for Forest Gump in 1994.)
Oak Ridge Country Club members (Hopkins, MN)
Jeff Tucker (Stone Bridge horse farm owner, Fairfield Greenwich Group founding partner)
Family of Eliot Spitzer (former New York Governor)
Palm Beach Country Club
Lawrence Velvel (Massachusetts Law School dean)
Wilpon family (New York Mets owner)
Wunderkinder Foundation (Steven Spielberg’s charity)
Stanford Financial Group (manages US$8.5 billion of assets for more than 30,000 clients in 136 countries on six continents)
UBS (the world’s largest manager of private wealth assets and the second-largest bank in Europe)
Royal Bank of Scotland
Fortis Bank Nederland
HSBC Holdings PLC (both the world’s largest banking group and the world’s 6th largest company according to a composite measure by Forbes magazine.)
Bank Austria
Unione di Banche Italiane
Royal Dutch Shell PLC, or Shell (is the second largest private sector energy corporation in the world)
Royal Bank of Canada

Professional Financial & Investment Evaluations

If you are concerned, or have suspicions about an investment deal that you are involved in or considering investment in, you can determine its validity by hiring a professional financial evaluator.

Tips to Avoid Check Fraud

admin — Wed, 27 May 2009 15:55:56 +0000

 The retail industry loses $6 billion a year to check fraud, and the problem is expected to increase each year. One-third (1/3) of check fraud stems from closed accounts. Another twenty seven percent (27%) is due to counterfeit checks, twenty four percent (24%) to forgery, twelve percent (12%) to bankruptcy, and five percent (5%) of check fraud is attributed to other reasons.

Business owners in restaurants and hospitality businesses run a higher than average risk of check fraud. Merchants operating in industries where inventory - such as electronics - can easily be resold also run a higher risk of check fraud.

Retailers and business owners face a growing risk of check fraud as banks allow customers to open accounts via telephone and the internet, and computers make it easier for thieves to create phony checks.

Many businesses rely on check guarantee, check verification, and collection services to fight check fraud. But preventing acceptance of fraudulent checks in the first place is the best policy.

Tips to Avoid Check Fraud:

Establish a check acceptance policy and follow it consistently. Your policy should define acceptable forms of identification, necessary information to accompany checks, and dollar limits for check writing.
Insist on a photo ID. Only accept checks in which the customer name, address and phone number are imprinted on the check and that they match the information on the photo ID. Be sure the written and numerical amounts on the check correspond.
Confirm the ID is current. Check the date of the photo ID. More than 50 percent of forged checks are cashed with an expired driver’s license.
Record the employee’s initials on the check. The employee that processes and accepts the check should always initial the check or write their employee number on it, according to your company policy. This information will be needed if there’s a prosecution.
Look at the type style on the check. The type style should be consistent and aligned. Make sure it looks real. Also consider the “feel” of the check since most check paper has the same weight and texture.
Check the numbers. Ninety percent of bad checks are numbered below 500. However, this is just a caution, since legitimate new bank account checks are below 500 also.

As a business owner, you know that there are many categories of fraud in which you need to be careful. If you are considering an investment in which you have concerns that it may be fraudulent, hire a professional business valuator to examine intricacies of the investment, including its adherence to current tax and business laws.

Mr. Al Golden specializes in evaluating investments to protect businesses against possible frauds. He also provides CFO and Controller Services, forensic accounting, comprehensive business valuation, and forensic accounting. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

A.M. Golden Accountancy Corporation located in Carlsbad California which is in Northern Coastal San Diego County offers a free initial consultation. The majority of our clients are located in San Diego, Orange, Los Angeles and Riverside Counties; however, we serve clients outside this area as well. To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913. If you prefer, you may also send an email: al@amgolden.com

Divorce & Hidden Assets

admin — Wed, 27 May 2009 15:49:59 +0000

If you are already divorced and suspect that your spouse hid assets during the divorce proceedings, causing you to “win” less monies, you are allowed, in most states, to file a motion with the court to set aside the final judgment or agreement. Of course, your motion must be filed within a reasonable time of your discovery the fraud. For example, in the State of California, you are required to file a motion revealing fraud within two years of discovering the fraud. You may have divorced 10 years ago, however, if you have just recently discovered fraud that occurred during your divorce, or during your marriage and it affected the divorce proceedings due to hidden assets, you have up to two years to report this to the court.

In the California case of Rossi v. Rossi (2001), the judge found that Denise De Rossi had intentionally hid her $1.3 million lottery winnings from her husband, Thomas. The judge’s finding was to charge Denise guilty of fraud, and to award the entire winnings to Thomas.

If you have not divorced yet, but are preparing to divorce, you can prepare for your case by uncovering any hidden assets that your spouse may have.

What should you do if you suspect your spouse has hidden assets?

Hire an attorney or investigator who is used to working with global asset searchers and who is comfortable with digital technology. You will want someone able to look at all the data on your spouse’s computer, cell phone, PDA and like devices. Hiding assets has become very easy due to the digital ease with which one can move money via a mouse click; however, those movements leave digital residue that can reveal where the funds went, or at least the moment they left domestic accounts.
The key is to hire an investigator or attorney who specializes in collecting this digital information professionally and with speed. Your favorite attorney may have an expert in the field that he will sub-contract to detect hidden assets. Likewise, an investigator probably has several family law attorneys that he can recommend.
Take advantage of U.S. laws that require full financial disclosure and the performance of fair and honest dealing during divorce or separation. Family courts across the land are familiar with “fraudulent transfers” and can make the wronged spouse “right” through legal and equitable remedies, ranging from constructive trusts to the seizure of pension funds.

If you need help in uncovering hidden assets, A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913. If you’d prefer, you may also send an email: al@amgolden.com

A.M. Golden Accountancy Corporation located in Carlsbad California which is in Northern Coastal San Diego County offers a free initial consultation. The majority of our clients are located in San Diego, Orange, Los Angeles and Riverside Counties; however, we serve clients outside this area as well.

Mr. Al Golden specializes in providing expert witness, litigation support, income and estate taxation, comprehensive business valuation, forensic accounting, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

Hidden Assets Revealed

admin — Tue, 26 May 2009 16:17:07 +0000

In a Forbes study of 433 people, whose wealth ranked between $1 million to over $10 million, 56% of women and 36% of men said they had hidden or protected assets. Those with more than $10 million were three times as likely to have hidden or protected assets. Yet, very few of these asset-hiders had obtained a pre- or post-nuptial agreement to shield those assets. How do they protect their wealth?

Some millionaires practice “wealth preservation strategies” with trusts set up in offshore accounts to keep creditors, spouses, ex-spouses, and others from finding their assets.

“Offshore asset protection trusts (OAPTs), are popular protection vehicles because once established, OAPTs are nearly impossible to collect against, even with a valid judgment from the U.S.,” states Marlene M. Browne, Esquire.

In order to hide assets, some travel to the international tax havens of their choice to set up an account, but do so by using a second passport. Others simply arrange for a debit card attached to an offshore bank account established over the internet. This arrangement allows for traceless, tax-free spending and depositing.

However, the down side of this strategy for the asset-hider is that the U.S. requires full disclosure of any movement of money offshore. This means there should be a legal trace of the transfer of money in their taxes. Be wary of those who will only supply part of their taxes when subpoenaed; they are probably leaving out the forms that have hidden assets.

“If you think you might be dealing with an offshore issue in your life, scrutinize your partner’s 1040, Schedule B, carefully. Also, make sure you request and inspect pertinent tax forms, e.g., Form TD F 90-22.1; Form 56; Form 709; Form 926; Form 3520; Form 3520 and Customs Form 4790,” states Marlene M. Browne, Esq.

There are plenty of opportunities to hide money in the U.S.

Search for Hidden Assets in:

Trusts
Family-limited partnerships
Holding companies
Charitable Foundation
Limited Liability companies
Equity Reduction Plans (ERPs).

With an ERP, the owner remains on title to the real estate or business, while a third party depletes its value, typically through a bogus mortgage or other arrangement where the asset is used as collateral or security for a debt.

If you need help in uncovering hidden assets, A.M. Golden Accountancy Corporation offers a free initial consultation. The majority of our clients are located in San Diego, Orange, Los Angeles and Riverside Counties; however, we serve clients outside this area as well. To speak with Mr. Golden immediately, please call his direct line by dialing (760) 634-0990. If you’d prefer, you may also send an email: al@amgolden.com

Mr. Alvin Golden specializes in providing expert witness, litigation support, income and estate taxation, comprehensive business valuation, forensic accounting, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.