Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mark (age 44) and Mary (age 41) Mower are your tax clients. They have two children, Matthew (age 20) and Mindy (age 17). who live

image text in transcribed
Mark (age 44) and Mary (age 41) Mower are your tax clients. They have two children, Matthew (age 20) and Mindy (age 17). who live at home. Mindy is a senior in high school and Matthew commutes to a local college where he is studying soil management. Mark owns and operates a successful lawn maintenance and landscaping business. He has 6 employees and 3 pick-up trucks used for transportation to the job sites. The business has a credit card in its name for use by the employees and Mark, who fills the trucks with gas almost daily. Mark gave a business credit card to Mary, Matthew, and Mindy and told them to use it to buy gas for their automobiles used for shopping, going to school, and short trips, In the current year, his wife and children put $5,210 of gasoline in their automobiles using the business credit card. Mark is adamant that the $5,210 be deducted on his Schedule C. He feels the amount is small compared to the business gas purchases of approximately $28,000. Mark says the amounts charged are spread throughout the credit card statements and would be very difficult for the IRS to detect in an audit. Would you sign the Paid Preparer's declaration (see example above) on this return? Why or why not

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cutting Edge Internal Auditing

Authors: Jeffrey Ridley

1st Edition

0470510390, 978-0470510391

More Books

Students also viewed these Accounting questions

Question

Does it use a maximum of two typefaces or fonts?

Answered: 1 week ago