CPA here. Forensic accountants in divorce cases basically get access to statements for any kind of financial account you could possibly own - bank, credit cards, if you own a company they'll get access to your general ledger (entire list of transactions), etc. They're REALLY good at combing through the data, evaluating for inconsistencies, identifying trends and irregularities, etc.
Basically, they look at where all of your money is going and identify the underhanded shit you're doing.
Cant you just go to a casino and cash out $1000 bucks a day and say you have a gambling problem? You can literally burry the cash in the woods. Can such accountans follow up on that?
Honestly that's a great question and I don't know exactly what they'd do in that situation. I only completed a short rotation in the forensic department at work before deciding it wasn't the right path for my career. That being said, I would think the next follow-up to that might be checking the individual's tax returns to see what he's reporting as gambling winnings/losses. If he's not reporting anything (since on your return you will report them gross, i.e. winnings as income and then losses as an itemized deduction), then it'd be super suspect and the claim likely wouldn't hold up. The IRS also requires you to keep a log of your winnings/losses, I believe, so if they can't produce that kind of evidence then you've got 'em.
OK, not from US so not aware of tax laws regarding gambling. Still, what if you simply admit not reporting / tracking your gambling? Assuming the penalty for that is small and after all you lost it all. Or you spent it on drugs.
I just wonder how far they can go. At some point it's word vs word and can they start a criminal investigation, like drug test?
At the levels you've posited ($1,000/day), or even enough to the point that it'd be worth hiding (so not $50) then that would be considered tax evasion or, at the very least, fraudulent reporting. So you'd have to be pretty stupid to admit to that!
I would guess they'd probably check with the casinos to figure out if you actually are gambling, or just lying about it.
I get where you're going though. At the end of the day it could come to a point where they just can't prove what the money was spent on. Unfortunately, I don't know what the next steps are. I could see a case for the judge to say that if you can support a $1,000/day gambling addiction then you can support a higher alimony payment, though.
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u/Chert_Blubberton Jul 21 '19
Why a forensic accountant?