Question: Your self-employed tax return client tells you that she estimates her total out-of-pocket supplies expense for the year as around $6,000. She cant be more
Your self-employed tax return client tells you that she estimates her total out-of-pocket supplies expense for the year as around $6,000. She cant be more precise, however, because her records were destroyed in a fire. Based on having prepared her tax returns for prior years, you believe that $6,000 is a reasonable guess and are prepared to enter that amount on her Schedule C.
But then the client throws a curve ball at you. Dont enter it as exactly $6,000, she says. Put it in as some odd amount, maybe $6046.14 that way it will look more like a real amount and not just a guess. Dont want to give the IRS a reason to audit me!
Based on SSTS No. 4, how should you handle this unusual request?
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