Can't make this stuff up!

Josh Nowack

March 25, 2015

From a colleague of mine off of a new clients pre year's return

General Footnote to Form 1040

Over the years, we have found it a best practice to provide information about certain deductions and situations to the IRS with the return so the IRS doesn't have to come and ask.  This approach has been tailored to the IRS concerns and taxpayer needs for understanding and because audits are often about credibility.  An understanding as to why your deductions are ordinary and necessary is an integral part for proper return preparation.  Since nobody knows when an audit is going to occur, this preparer has found it prudent to preserve this information of the taxpayer's returns as a precaution and to be a contemporaenous planning tool.

The taxpayer did a lot of little things this year, all of it designed to build his business. He took his whole life savings and his parents blood, sweat, and tears which came very freely because he was living with them and that's not a very easy thing to do for a man.  He spent some time at the beginning of the year in fire fighters camp taking care of fires as a volunteer, which covers room and board because he has friends there.  It's something worthwhile to do and his girlfreind thinks he's very hot.  He didn't want to cool off with her and when he got back, he took off his shirt for her and she was satisfied because he's still hot.

The taxpayer managed to invest $60,000 in his business this year and it shows on his K-1.  And if you think the forest is dry, you ought to see his bank accounts and assets.  the only thing that keeps him loose is his girlfriend who likes keeping him happy.  That includes meals and entertainment gets pushed into the relationship free of charge.  But if the truth known, he belives he does most of the pushing, though his girlfriend might object to that comment.

The taxpayer's biggest expense remains his car and with his mother's cooking, he could almost live on one meal a day.  She's been known to put out a banquet for breakfast and don't even come for dinner unless you haven't eaten for 5 days and you better come in hungry.  No matter how much he eats, she'll keep filling up his plate and his girlfriend has to keep him working overtime to keep him thin and in shape.  Fire camp helped because he was at least away from the cooking.  Taxpayer has held down multiple jobs and constantly is moving from job to job and lives practically in his car.

The taxpayer agreed to allow the preparer to e-file although the appropriate e-file opt out form will be signed.  In the event there is a problem, the taxpayer doesn't have to be delayed in his filing.

   

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