Return from estimates?

[thomtax]

There was a thread sometime in the past about filing returns using estimates when there are no documents available. I have one of these now for 2003, with only 1099M. This was filed by IRS, for a truck driver, and of course no expenses were used. There would have been gas and per diem deducts, etc., but would be unable to prove all of this.

What are your experiences with this type of problem in the past?

LT

[Davc]

I did a Corp return using a printout from the bookkeeper that covered Jan-March. I extrapolated the remainder of the year on a spreadsheet and prepared the return with a copy of the spreadsheet and a disclosure statement. It was accepted without any further correspondence.

Your drive is out of luck for per diem since the Cohan rule doesn't apply to travel expense. I'd read these three links:

http://blog.pappastax.com/index.php/2008/12/28/issue-5-dr-tax-o-sphere-or-how-i-learned-to-stop-worrying-and-love-the-tax-code/#more-2386

(Cohan Rule)

http://blog.pappastax.com/index.php/2010/03/23/do-tax-preparers-have-a-duty-to-exam-their-clients-receipts/

(See the bold paragraph at the bottom.)

http://www.nyserda.org/Energy_information/diesel.asp

(Historical Diesel Prices)

[thomtax]

Thanks Davc - Appreciate the links.

LT