NECPA in NEBRASKA Posted October 18, 2022 Report Share Posted October 18, 2022 1040 not filed today, because client says that he did not make as much money as his Schedule C shows. I took every deduction that I thought was legal. The expenses for running for public office that I found were not a deduction against his business. He is looking for more deductions. He also says that I did not take the Covid credit that was available to everyone. It turns out to be 7202 for sick leave. I read them the directions and all of the things that made that credit possible. He said that the city was shut down, but that was in 2020., also not a reason for sick leave. He did not have any employees or children at home. Neither of them had Covid or the vaccine. They did not have to quarantine. I am willing to try to help, but I can't see anything that makes this credit available. If I am wrong, please let me know and I will gladly call and advise him on what else he can look for. Thanks! Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted October 18, 2022 Report Share Posted October 18, 2022 If he doesn't have a balanced set of books in some bookkeeping software, any errors are on him. No clue on the alleged credit. 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted October 18, 2022 Report Share Posted October 18, 2022 I submitted copy of my positive test result with the form just as a backup, I don't believe it is required but did it anyway. 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 18, 2022 Report Share Posted October 18, 2022 This reminds of an ex client that I sent a letter at the beginning of tax season telling him I wouldn't be able to prepare his return this year. So he ends up at H & R Block freaking out when Block tells him he owes $10,000. So he calls me begging me to review their return because how could he possibly owe that much. So I reluctantly agreed since he used to be a long time business client. The Block tax return was accurate. He had paid no attention to the changes in his taxable income during 2021 . When I asked him whether he had asked the Block preparer to go over the return with him, he said , "No I just took my documents back and called you. 1 4 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted October 18, 2022 Author Report Share Posted October 18, 2022 1 hour ago, cbslee said: This reminds of an ex client that I sent a letter at the beginning of tax season telling him I wouldn't be able to prepare his return this year. So he ends up at H & R Block freaking out when Block tells him he owes $10,000. So he calls me begging me to review their return because how could he possibly owe that much. So I reluctantly agreed since he used to be a long time business client. The Block tax return was accurate. He had paid no attention to the changes in his taxable income during 2021 . When I asked him whether he had asked the Block preparer to go over the return with him, he said , "No I just took my documents back and called you. Mine was short $25k in expenses from the previous year and didn't think that would affect his taxes! 1 3 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted October 19, 2022 Report Share Posted October 19, 2022 21 hours ago, NECPA in NEBRASKA said: I will gladly call and advise him on what else he can look for. Tell him to look for a new preparer. He has to know that campaign expenses aren't business expenses. Telling instead of asking you what credits he's entitled to is another sign that this is not a desirable client. 5 Quote Link to comment Share on other sites More sharing options...
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