- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
A new client who started his business, in 2019 didn't claim $ 20,000 on his 2020 tax return, cause his income was $40,000 and his expenses were $60,000, he was afraid that this will raise a flag.
So what's the best solution for his situation.
By the way I asked the other group and I didn't get a response.
THANKS IN ADVANCE
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Amend the return or forget about it.
For your unasked question - no you can't claim it on 2020.
Ex-AllStar
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Good, so just to clarify, amend 2019, so what should he say, what's his excuse
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"he was afraid that this will raise a flag"
If he is doing things legit, he shouldn't be afraid of raising flags, unless of course it is being raised to half staff in his honor.
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Excuse? Just say the return is being amended to reflect expenses that were omitted in error on the originally filed return.
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
just wanna mention that he came from a country where every one is guilty, unless you have a proof you're not
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"just wanna mention that he came from a country where every one is guilty, unless you have a proof you're not"
But he signed the 2019 return, knowing it was incomplete. He's proving himself to be guilty. That's why you Amend it = make the correction and file with all the applicable data.
A business loss sometimes happens. In the IRS literature, you can read about this. Read about "hobby or business."
"Level Up" is a gaming function, not a real life function.