>> I am not an IRS auditor, and it is not my responsibility to require my clients to prove to me all the expenses they claim to have incurred and paid, whether those costs are for deductible expenses or represent capitalized costs, as in the case here.
I agree that we are not IRS auditors, BUT I believe it is our responsibility to inform them of the IRS record keeping requirements, and the rules. With my rental clients I have to drill this all the time. Some of my clients have been very good. They will save a $2 receipt from Ace Hardware and the $20 they paid in cash to get their yard cleaned!
In my opinion there are two types of clients:
1) Is not informed but will follow your recommendation to do it right, and respect you for pointing them in the right direction.
2) Does not care; will not listen to you; lazy and claim ignorance all the time.
Once I figure out that a new client is type 2, I figure out how not to do their next tax return. I found these people will be the first one to throw you under the bus in an audit.
I agree that we are not IRS auditors, BUT I believe it is our responsibility to inform them of the IRS record keeping requirements, and the rules. With my rental clients I have to drill this all the time. Some of my clients have been very good. They will save a $2 receipt from Ace Hardware and the $20 they paid in cash to get their yard cleaned!
In my opinion there are two types of clients:
1) Is not informed but will follow your recommendation to do it right, and respect you for pointing them in the right direction.
2) Does not care; will not listen to you; lazy and claim ignorance all the time.
Once I figure out that a new client is type 2, I figure out how not to do their next tax return. I found these people will be the first one to throw you under the bus in an audit.
Comment