Ken and Mary Blough, your neighbors, have asked you for advice after receiving correspondence in the mail from the IRS. You learn that the IRS is asking for documentation in support of the itemized deductions the Bloughs claimed on a recent tax return. The Bloughs tell you that their income in the year of question was $75,000. Because their record-keeping habits are poor, they felt justified in claiming itemized deductions equal to the amounts that represent the average claimed by other taxpayers in their income bracket. These averages are calculated and reported by the IRS annually based on actual returns filed in an earlier year. Accordingly, they claimed medical expenses of $7,102 taxes of $6,050, interest of $10,659 and charitable contributions of $2,693. What advice do you plan to give the Bloughs?

The response to the questions should include, 1) tax implications, 2) importance of Cheryl L. Werff Summary Opinion, and 3) Recommendations.

Research Aid: Cheryl L. de Werff, TC Summary Opinion, 2011 - 29