Taking a Look at The Most Famous Forensic Accounting Cases

If you’re reading this blog, you already know that forensic accounting is accounting that deals with litigation and disputes. Forensic is used because the result of this type of accounting is facts that can be utilized in court. Expert evidence is given by forensic accounting firms in NYC, LA and every other American city. Below, we will take a look at some of the most famous cases that went one way or another based on the findings of forensic accounting.

Al Capone’s Tax Fraud – Al Capone may be the most notorious and violent gangster in American history. His rule over the Chicago drug scene is well documented, but what many people do not know is he didn’t go to jail for his violence. Capone was brought in on tax fraud through forensic accounting. The evidence was in the money brought in from illegal activity that was never documented for tax purposes.

A Beatle’s Divorce – When Paul McCartney was going through his divorce with Heather Mills, his ultimate networth came into question. Mills believed that McCarthy was worth north of 800 million pounds at the time and she was entitled to half. Not overly surprisingly, McCarthy felt he was worth much less. Forensic accountants were asked to prove the truth worth of McCartney’s assets. They found that the truth was closer to 450 million and that’s how they determined how much money Mills would ultimately receive.

OJ’s Money – Everyone is well aware of the infamous OJ Simpson murder trial. The story is in the headlines again with ESPN’s latest documentary. However, many people don’t realize that after Simpson was found innocent of murder, Nicole Simpon’s family sued over the money her family was due. Simpson claimed that the trial had left him flat broke and he was unable to assist financially. This is where a large team of forensic accountants were brought in to set the record straight. It turned out that OJ had more than 33 million dollars. The family was then paid an undisclosed amount.

How to Get the Most from Your Tax Accountant

Hiring a tax accountant is something that many businesses don't think twice about. There are lots of tax accountants in New York, and business owners typically hire the first one they find or whichever one a friend recommends. However, the capabilities of different tax accounting firms can vary greatly, and those differences can add up to major advantages for your business as time goes on. That's why it's important to choose a firm with a wide range of accounting experience and services, so that the accountant you know and trust best will be able to serve you in a variety of ways as your business needs change.

1. Auditing – There will be many occasions when you might end up needing a professional auditing service. These could include checking the financials of a partner organization or performing due diligence before buying out another business. These kinds of auditing are routine, but invaluable, and your ability to make a sound business decisions depends on the accuracy of the information you're given.
2. Audit defense – If your business is audited by the IRS, you will want your tax accountant to be intimately familiar with the process. They will need to serve as your go-between with the government and, if they are talented, can help make the process go smoothly and take as little time as possible. They can also advise you on what documents you'll need to provide and what to expect.
3. Litigation support – It's unfortunate, but most businesses will end up in litigation at some point or another. You will be more successful if your accountant knows what the lawyers need and can provide numbers in a form that will be compelling to a jury.
4. Forensic accounting – What happens if money goes missing, or if you suspect a company you work with is cooking their books? That's when you need forensic accountants. They act as investigators and uncover the paper trail that will explain what happened to missing or imaginary money. This is one of the most valuable services a tax accounting firm can offer, but most firms have little experience doing it. 

This is just the tip of the iceberg in terms of what you should expect from a good business tax accountant in New York. Ask your accountant detailed questions and make sure they are capable of providing everything you need—today and in the future.