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2019 tax

Anonymous
Not applicable

  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

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1 Solution

Accepted Solutions
qbteachmt
Level 15

"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."

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"Level Up" is a gaming function, not a real life function.

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6 Comments 6
sjrcpa
Level 15

Amend the return or forget about it.

For your unasked question - no you can't claim it on 2020.


Ex-AllStar
Anonymous
Not applicable

Good, so just to clarify, amend 2019, so what should he say, what's his excuse

 

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IRonMaN
Level 15

"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!
IRonMaN
Level 15

Excuse?  Just say the return is being amended to reflect expenses that were omitted in error on the originally filed return.


Slava Ukraini!
Anonymous
Not applicable

just wanna mention that he came from a country where every one is guilty, unless you have a proof you're not

0 Cheers
qbteachmt
Level 15

"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.