How Much To Push The Issue?

[Crank]

TP claims $150 in "work clothing". I inform TP that the clothing has to be "not for everyday use". i.e. uniforms, company logo, steel tip boots, etc. TP says no I just buy regular jeans and I have deducted them for years. After I press the issue he changes his claim and states that the clothing does conform to the rules. The receipts he provided dont state either way.

Now we arent auditors and the TP is signing the return but this makes me very uncomfortable.

[Janitor Bob]

I get a few of these every year. I explain the situation and requirements as you have done. I then explain to the client that I certainly "can" deduct the items if they insist that they conform to the requirements....but that if ever audited, the IRS, unlike me, will require proof....and if that proof cannot be providedm unpleasant things may happen....and that would be on them...not me....and possibly open the door for IRS to look into other years and/or other parts of the returns....BUT..if they think that risk is worth the small benefit, I will include it on your return....and document the conversation in my notes.

In some cases, where the deduction is large, I will copy/paste a section of the regulations onto a statement that client signs indicating that they have read and understand the requirements for the clothing to be deductible and attest that the clothing conforms.

Client just last evening came in and the first thing she wanted to do was give me a reciept for her orthotic shoes that she purchased for work...she is an in-home caregiver for elderly. I informed her that that would be a tough deduction to include unless the shoes can only be worn in that work setting and not for everyday wear. "Oh...they can only be worn at work....I can show you"...and she proceeds to point to her feet. "but you're wearing them now and you're not at work..and in fact, just shared that you were late for your appointment because you just came from the grocery".

"Oh yes...I guess I can't deduct them"

[mcb39]

I have found that in most cases with the 2.5% of gross; they usually don't actually get the deduction anyway. Of course, it is the ethics thing for us.

[Crank]

Its probably quite common. I do inform them that the IRS could audit and disallow it. I also make notes. But I still feel uncomfortable.

[Crank]

I have found that in most cases with the 2.5% of gross; they usually don't actually get the deduction anyway. Of course, it is the ethics thing for us.

Yes its true for the Fed return. But its a 100% direct deduction for our State and Local returns.

[Janitor Bob]

you feel uncortable because you have high ethical standards...that's what separates us from the "I'll claim anything to keep a client" preparer down the street that is a jerk with fake hair that does not clean up after his dog when it poops on your sidewalk.

[ILLMAS]

Don't waste your time for $150, you warned the TP already.

[Jack from Ohio]

If the 2% threshold wipes it out, I put it on. No actual deduction, but the taxpayer thinks "I got to claim it." Usually, these same people end up with standard deductions. I print the Sch A and the taxpayer thinks they put one over on the IRS. None of those types ever look at the back of the 1040 to see the actual deduction, they just look to see if it is "claimed" on the return.

I wish I could experience the sensation of living and being that clueless about everything.

[pikester1967]

Are we talking about a specific profession, like a truck driver or traveling professional? My OTR Truckers save every receipt and we discuss the expenses frequently.

[Crank]

Are we talking about a specific profession, like a truck driver or traveling professional? My OTR Truckers save every receipt and we discuss the expenses frequently.

AC/Heating employee

[pikester1967]

I'd have to agree with the above comments. The amount is so immaterial, it's really not worth the risk of claiming and throwing up a flag.