Do you feel I am in compliance?

[AZ-Tax]

I have a tax organizer I have my clients and prospect complete. In the medical exps and charity areas especially, I ask detailed information including amts but do NOT mandate to see any receipts or letters. The tax organizer has the client or prospect signature.

Your thoughts?

[dyne]

That is what I have also. We are not expected to perform audits of our clients.
Many of my clients bring receipts, etc. and I simply staple them in the file after
I look at them.

[Jesse]

I don't ask to receipts either. I only warn the taxpayer they need to have and keep the receipts in case they receive a nice little letter in the future asking for proof to verify the amount they have claimed.

[Snaggletooth]

Yes

You are in compliance if you believe the IRS does not expect you to audit.

Many of my customers summarize their own categories of expenses and give them to me on a sheet of paper. I use their numbers without any thought of looking at receipts. In fact, I discourage bringing receipts to me. But I make no pretense of taking responsibility for the accuracy or adequacy of their numbers and encourage them to keep receipts for seven years.

If things look fishy or inappropriate, I may ask to see some things, and I believe this is what we should be expected to do. An exceptionally large category for "Repairs" for example, may actually be the result of purchasing replacement equipment which should be capitalized.

[Gretel]

The only category on Sch. A I insist of getting at least details, better receipts, is donations. If name is a known charity, that's good enough for me. If name is unfamiliar, no deduction or I insist on seeing receipt.

[Burke]

I do the same. However, I did ask last year for an itemization (not the receipts) of charitable contributions. Many "donate" money to ineligible organizations. So I cull those.

[ChEAr$]

As for contributions, I want to see receipts so I can peruse them in front of client and make sure each has the magic 501c3 on it, and point this out to client for his own education and edification.

Should there be an "iffy" one, while client is here I can go to the IRS publication78 online and check it out.

[taxmandan]

Charitable donations require extra scrutiny. Had a client present a receipt for a $14,000 donation of an antique tractor to a local museum [501(c)3]. Upon questioning, I learned that the donation was equipment he bought at an auction for $455 only 4 months before he donated it. Sorry, deduction is only basis in that case. Now an ex-client, he didn't like that answer.

[ChEAr$]

Charitable donations require extra scrutiny. Had a client present a receipt for a $14,000 donation of an antique tractor to a local museum [501(c)3]. Upon questioning, I learned that the donation was equipment he bought at an auction for $455 only 4 months before he donated it. Sorry, deduction is only basis in that case. Now an ex-client, he didn't like that answer.

that reminds me of a client asking if it was okay for her to do the same thing as a friend
of hers. The friend would go around on Saturday mornings to yard sales, buy stuff dirt
cheap, and then donate at to charities and claiming (a higher of course) fair market value.
She claimed she made money on that deal while being charitable.