You have recently been hired by a new client, Julie, who presents you with one income document:

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You have recently been hired by a new client, Julie, who presents you with one income document: a 1099-MISC indicating nonemployee compensation from the National Intelligence Agency for $150,000. Julie is unmarried and has no children. You ask Julie what she does for the agency and she will not tell you, but indicates that she travels. You explain that because she is a contractor for the agency, she is allowed to deduct her work-related expenses against her income. Julie indicates that she does not wish to deduct any expenses, but does indicate that she has some, although she refuses to provide you with any details. You suggest that Julie might be able to deduct travel-related meal expenses based on the standard meal allowance, but Julie is noncommittal and does not provide any details. Julie requests that you prepare and file her tax return showing the full $150,000 as profit. Can you prepare and file Julie’s return in the manner that she has requested?

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Federal Tax Research

ISBN: 9780357366387

12th Edition

Authors: Roby Sawyers, Steven Gill

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