Question about taxes....

[Dave D]

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I am a CPA and have dealt with the IRS in this area. They will tell you in no uncertain terms that this is income and no attorney that works in this area will tell you otherwise. Having a transfer held up a week to confirm your identity will not convince the IRS that you do not have full control over the account, especially if you got the money in the end.

I never said that Party was a bank account. I said that Party is an account in which you have a financial interest. The Treasury Department is very clear to include in their examples that it does not mean just bank accounts for reporting.

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I mean I'm not saying it's not income per se, and he should definatly report it. What I'm curious to know the answer to is basically when do you report it? Do you report whatever the balence of your party account is the day before the next fiscal year? Seems like anything else penalizes you when you could actually lose money during the year.