Please Calculate tax return for this case

3. A letter to the client, important to have a level of tact and to understand the objective realities of the situot (Hint: Your clients ore emotionally invested in their cose. It is compassion. However, please keep in mind that your dlients need ion. It is also importont to inform your client of how you This means you need to explain your analysis but in terms that a non- professional will understand. Finally, it's important to tell will do for the money) your client what you have done and what you Case Facts 1. Your new clients are Fred and Mary Taxpayer received a Notice of Deficiency from the IRS in the amount of $9,147 for their 2. Fred and Mary timely-filed 2016 federal taxes. 3. The IRS also included an accuracy-related penalty under 56662(a) of $1,829, 4. Mr. Taxpayer believes himself to be a professional poker player. From 2010-16, Mr. Taxpayer entered into at least 150 professional poker tournaments. Over the years, Mr. Taxpayer has earned a total of $1,000,000 from gambling winnings. For tax year 2016, Mr. Taxpayer filed a Schedule Calong with the couple's Form 1040 and reported gross receipts of $20,045 5. To play in the tournaments, Mr. Taxpayer had to pay entry fees and buy-in fees. Tournaments keep the entry fees to recover their costs buy-in fees. and players, if they win, are eligible to win a portion of the 6. Mr. Taxpayer is able to produce records showing buy-in's in the amount of $20,940 for the 2016 tax year. He is able to show he entered at least 29 poker tournaments in Las Vegas and Atlantic City for the tax year 2016. 7. On Mr. Taxpayer's Schedule C, he listed his business as a sole proprietorship and his occupation as a "Consultant." Mr. Taxpayer did not include any business expenses in his Schedule C 8. However, records provided by the IRS, which were validated bills from casino hotels, show the following expenses A. Hotel Rooms B. In-Room Movies C. Spa Treatments D. Alcohol Mini-Bar Charges E. Meals $5,300.00 256.00 1,250.00 2,750.00 3,780.00 CPA. 3. A letter to the client, important to have a level of tact and to understand the objective realities of the situot (Hint: Your clients ore emotionally invested in their cose. It is compassion. However, please keep in mind that your dlients need ion. It is also importont to inform your client of how you This means you need to explain your analysis but in terms that a non- professional will understand. Finally, it's important to tell will do for the money) your client what you have done and what you Case Facts 1. Your new clients are Fred and Mary Taxpayer received a Notice of Deficiency from the IRS in the amount of $9,147 for their 2. Fred and Mary timely-filed 2016 federal taxes. 3. The IRS also included an accuracy-related penalty under 56662(a) of $1,829, 4. Mr. Taxpayer believes himself to be a professional poker player. From 2010-16, Mr. Taxpayer entered into at least 150 professional poker tournaments. Over the years, Mr. Taxpayer has earned a total of $1,000,000 from gambling winnings. For tax year 2016, Mr. Taxpayer filed a Schedule Calong with the couple's Form 1040 and reported gross receipts of $20,045 5. To play in the tournaments, Mr. Taxpayer had to pay entry fees and buy-in fees. Tournaments keep the entry fees to recover their costs buy-in fees. and players, if they win, are eligible to win a portion of the 6. Mr. Taxpayer is able to produce records showing buy-in's in the amount of $20,940 for the 2016 tax year. He is able to show he entered at least 29 poker tournaments in Las Vegas and Atlantic City for the tax year 2016. 7. On Mr. Taxpayer's Schedule C, he listed his business as a sole proprietorship and his occupation as a "Consultant." Mr. Taxpayer did not include any business expenses in his Schedule C 8. However, records provided by the IRS, which were validated bills from casino hotels, show the following expenses A. Hotel Rooms B. In-Room Movies C. Spa Treatments D. Alcohol Mini-Bar Charges E. Meals $5,300.00 256.00 1,250.00 2,750.00 3,780.00 CPA