IRS Tax Audits Target
Charter Yacht Owners,
Boat Business Deductions
Smart Yacht Owners
Stay off the IRS radar with
a Charter Compliance Check
Yacht Examination Simulation
Repair And Delete Audit Risks
Is the IRS looking at your boat business?
As a responsible boat owner, you probably wouldn't leave the dock at night in a storm without fully functioning radar on your yacht- would you? You certainly wouldn't take charter passengers out without being able to determine what potential threats may lie ahead.
That would be blatantly foolhardy and dangerous. Not only would such recklessness place you and your family in jeopardy, but the yacht owner could be subject to substantial civil liability as well as possible criminal ramifications.
However, that is essentially what many – maybe most - owners of charter boats do every day!
The IRS publically states that it specifically targets boat owners and charter yacht operations for audit because of the diverse schemes, rampant noncompliance, abuse and fraud. Yet few charter owners have an accurate assessment of their position or what may lie ahead.
Are you in compliance?
Is the IRS looking at you?
How would you even know?
What could be your maximum liability?
Do you know what to do to avoid your exposure?
Using the same advisors responsible for your losses?
Even the Titanic with all her resources and accomplished captain and crew, was clipping along at a record pace – everything was fine, the entertainment was superb, everyone was having a good time and enjoying the luxurious lifestyle, until all of a sudden, with no warning – disaster struck. An epic tragedy that could have easily been avoided with the proper foresight – or maybe just another set of eyes with a different perspective.
Yachting Examination Simulation / Reveals And Detects Audit Risks
Ben Franklin - and your mother were correct, “An ounce of prevention is worth a pound of cure”. How much more so with boats?
How valuable is it to be able to "see" potential threats ahead?
Then plan accordingly to prevent potential disaster?
It can make all the difference in the world - even life and death.
Used properly, radar identifies risks in time for corrective action.
With potential conflicts, you want your adversary on your radar BEFORE you show up on his. This gives you time to prepare.
YES RADAR Charter Compliance Check provides yacht owners unique foresight-that almost no other advisors can - or will.
So boat owners can avoid potential economic and regulatory risks.
Most charter owners have no idea of the potential risks ahead.
Are they now, or will they soon be on the IRS’s radar-
targeted for an audit of their “charter business”.
Or what they can do about it? To avoid a possible disaster?
If you knew how to avoid IRS scrutiny for noncompliance, you- and your team of advisors - would already be doing it- correct?
Consequently, most yacht charter owners are completely blindsided - with no advanced warning of an audit. After all, most yacht owners believe they have the best advisors advising them already.
However, not many advisors know how to make net after tax profits from a charter operation. That’s the primary problem.
Nor do most yacht owners have any idea how their “yacht charter business” would actually stand up to an IRS tax audit since they have no independent third party to advise on such matters. Or what they could have done to avoided an audit in the first place or to pass an audit.
That’s why YES Yacht Executive Solutions created the YES RADAR Charter Compliance Check. To serve as a lookout with another set of eyes and a new perspective to avert possible disaster.
Prudent yacht owners wouldn't charter without marine and weather radar.
Astute yacht owners should not charter their boat without YES RADAR.
Discover potential audit risks and how to avoid them.
Would they consider it a hobby or a business?
Would they consider it passive or active?
Would they allow your deductions?
Might they deny your claims?
And assess penalties
Wouldn’t it just be easier if you could just make a net profit each year to pay for your yachting lifestyle?
A YES Yacht Examination Simulation Charter Compliance Check is designed to identify and resolve potential tax compliance issues in your historical and current yacht charter operations. Yet there is no need to stop there. In providing you with some answers help you better prepare and comply with possible tax issues in your past, YES is also able to help avoid future tax issues by helping yacht owners actually earn a net profit going forward.
WHY YOUR CURRENT CPA OR OTHER ADVISORS CAN’T HELP YOU NOW
Obviously, the reason you are on, or will likely be on the, the IRS radar for an audit is because you and your current advisory team do not know how to make a net profit from your boat charter operations- in 3 out of 5 years. That is why you are in this position.
If they knew how, they would have already shown you. So clearly, they probably don't have the answers for profitable yacht charter. But that should not be a surprise. Their professional discipline has not trained them accordingly or may actually prohibit them advising upon such. They may be keeping quiet since they are making money and hoping you will not blame them when the IRS shows up
Yet there is another reason why your CPA can’t help you.
Your CPA is constrained by the IRS and professional ethics. If your CPA finds errors or fraud in past filings, there are established protocols that he is obligated to follow. Consequently, a tax compliance check of your charter business is best done by someone other than your current tax preparer or other "advisor" that may have a vested interest in maintaining the status quo.
If your CPA prepared your tax returns in the past, IF he / she were to NOW go back and do a more thorough review of your charter business, and came to different conclusion – they would be obligated to request that you file an amended return for prior years. Which would probably result in additional taxes, penalties, and interests.
Also, if your current CPA or tax advisor were to perform a detailed review of your boat endeavors - and concluded you did not meet the requirements of being a business or your activity was only passive when you wanted to file it as active, then your current CPA could not file future returns knowingly that you were going to take a tax position that could not likely be supported.
As discussed elsewhere, it is not very likely that your current CPA will admit to making mistakes in the past. You wouldn't expect your CPA to essentially admit to malpractice do you? And besides he doesn’t have the answers as to how to actually make your charter boat business profitable in the future.
For many reasons, neither your current CPA and nor your other advisors - no matter how competent and skilled they may be in their specific discipline - are adequately prepared to provide a tax compliance check of your charter boat business or help your business profit in the future
Just as there is no substitute for a new set of eyes with a different perspective, there is no substitute for using the right tool for the job at hand. Yes Yacht Executive Solutions and the Yacht Examination Simulation / RADAR Charter Compliance Check can protect charter boat owners.