Clients have all sorts of ideas, of course, but few that can combine flights of fancy and the risk of tax trouble like unusual business ventures. Here’s what a selection of tax pros and accountants ranked as the riskiest ventures they were ever asked to advise on – and the outcomes.
“Years ago, a client was recruited to become part of a local Ponzi scheme before it was even called that,” reported Eric Hansen of Hansen Accounting in Omaha, Neb. “I saw red flags as he told me about it. The client was jumping with all three feet to sign up and didn’t like my opinion. He made an initial small investment against my advice.”
That money is gone, but the client is still with Hansen.