income verification

[wysiwyg.ea]

I have a client whose profession generally receives gratuities. I have informed him that it is likely the IRS would require him to report tips from his profession. I was told that all of his income is stated on the documents he gave me for his Schedule C.

I'm concerned about possible blowback. Thanks for any help.

[Possi]

Tips

I just work with what I'm given... warned a stripper of the same thing and told her she needed to report all her tips. I think she misunderstood... gave me her bra size...

[BP.]

stripper . . . needed to report all her tips. I think she misunderstood... gave me her bra size...

If you had posted this gem in the morning, I'd have risked spewing coffee through my nostrils!

[RitaB]

Hmm

If you're sure client is lying to you, let him go. If he does have trouble, he will blame you. I doubt he WILL have trouble simply because IRS doesn't catch things. But, I would be sure he knows that he is REQUIRED to report all income, regardless of how likely it is that IRS will question the return.

Donna - that was priceless.

Here's my tip: Never fry bacon naked. Heard that at a church retreat.

[taxmandan]

I have them sign a statement:

The Internal Revenue Code requires all income to be reported and taxes paid on that income as determined by law. I understand that income includes all tips, gifts and gratuities in addition to wages I receive as a result of my employment. I am reporting the following information for the accurate preparation of my 2009 income tax returns:

__ I did not receive any tips, gifts or gratuities in 2009 related to my employment.

__ All tips, gifts and gratuities were reported to my employer and have been included on my W-2, Wage & Income Statement.

__ I had tips, gifts and gratuities in the amount of $______________ to be reported as income.

Signed: ____________________________ Date: _________________

[oceanlovin'ea]

Donna

Thanks for making me smile today. I needed that.

Linda

[Possi]

great sheet!

The Internal Revenue Code requires all income to be reported and taxes paid on that income as determined by law. I understand that income includes all tips, gifts and gratuities in addition to wages I receive as a result of my employment. I am reporting the following information for the accurate preparation of my 2009 income tax returns:

__ I did not receive any tips, gifts or gratuities in 2009 related to my employment.

__ All tips, gifts and gratuities were reported to my employer and have been included on my W-2, Wage & Income Statement.

__ I had tips, gifts and gratuities in the amount of $______________ to be reported as income.

Signed: ____________________________ Date: _________________

Thanks for that signature page. I'm sure lots of us will use it. No more misunderstandings!

whew...

[Possi]

sure

... my pleasure............

[wysiwyg.ea]

Thanks for the advice

Possi, thanks for the template. First year in biz on my own and never had a client who was in an industry where tips were prevalent when I worked as an employee doing this.

Any value at all in documenting and filing a dated memo that you counseled client even w/o having a signature? At the time, I would have followed your collective advice but after the fact it would be difficult.

[AccTaxMan]

I just work with what I'm given... warned a stripper of the same thing and told her she needed to report all her tips. I think she misunderstood... gave me her bra size...

Very funny indeed. A standup comedian can use it as an on-stage joke.

[Burke]

Possi, thanks for the template. First year in biz on my own and never had a client who was in an industry where tips were prevalent when I worked as an employee doing this.

Any value at all in documenting and filing a dated memo that you counseled client even w/o having a signature? At the time, I would have followed your collective advice but after the fact it would be difficult.

Well, its better than nothing. I make notes about telephone discussions. Now prefer email as it is in writing.

[Questionguy101]

I just work with what I'm given... warned a stripper of the same thing and told her she needed to report all her tips. I think she misunderstood... gave me her bra size...

What...only 38 dollars for the whole year??????

[Possi]

Not mine

Possi, thanks for the template.

Not mine, but taxmandan's~ Thanks to him....