Are you concerned that your spouse or partner may be having an affair? While many people in your situation may think that a private investigator or even a divorce attorney is the one that can help them find out, don't overlook the value of working with a CPA as well. How can a CPA help you find a cheating spouse? Here are five things in tax returns alone that a CPA can look for. 

1. Liquidated Assets

Partners having affairs may start needing a lot more money to carry on their double lives. Where will they get this money from? Liquidation of several types of assets must be reported on federal and state taxes. This includes the sale of stocks, the sale of an income-producing hard asset, real estate transactions, early withdrawals from retirement accounts, and sales of inherited assets. 

2. Parked Tax Payments

Tax payment parking is a trick used to hide money. The devious spouse sends in estimated tax payments that are far higher than their actual tax bill. This money is then carried forward each year and continues to be held by the IRS. Once the spouse is divorced, they ask for a tax refund on the funds. 

3. Increased Business Expenses

With more and more people starting side gigs, small businesses, and hustles, business expenses are an increasingly common way to hide expenses. Some cases may be easy to spot, such as if their business expenses suddenly jump higher. Other situations need a more detailed investigation into specific deducted expenses. 

4. Income Mismatches

Does your spouse tell you that they are working a lot? Going on trips for the company? Then it's a good idea to look at their income and employee expenses. If the amount of income, commissions, or merit-based bonuses don't seem to add up to the amount of work being done, that time may not be spent on company business. 

5. W-2s and 1099s

Forms W-2 and 1099 are informational returns prepared and sent out by the payers. Therefore, they are independent sources of information on where and from whom your spouse may be getting money. Spouses have discovered anything from an unknown business to a second job or activities in another state. 

Where to Start

Finding these red flags in your tax returns can be difficult for the average American taxpayer. But a trained accountant knows what to look for, even when it may be well hidden. Start protecting yourself by learning if any of these possible indicators exist in your taxes. Make an appointment with a CPA tax service today to learn more. 

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