Client started a business (sole prop) buying and selling firearms in 2005. The 2005 returns were filed without including the Sch C. (Client is sure there was a loss for 2005 business.) Anyways, he is now in prison for buying and selling firearms while charged with a felony. I told him we need to amend the 05 returns and include the business income/loss. The ATF has seized all of his inventory/guns, about $6k, and all of his records and receipts. How should this be handled??
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What tax software are you using?Dave, EA -
Client in Prison
What difference does it make which software is being used?
What's important is the preparer doesn't have business records to work with to prepare the return?.
I suggest you speak to client's attorney and mention that the government has confiscated the business records and a proper filing can't be based on estimates.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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Re Prison...
If it matters, I'm using ATX. So, do you suggest leaving it alone, since I do not have any numbers to use?? Also, what about 2006, he says he had a few sales in 06. I have the sales tax report (but no expenses), can I use that for the income??Comment
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