Requirements

Need a 2018 Federal income tax return with appropriate supporting forms and schedules for the Stewarts. In doing this, follow these guidelines:

• Make necessary assumptions for information not given but needed to complete the return.
• The Stewarts are preparing their own return.
• The Stewarts have the necessary written substantiation (e.g., records, receipts) to support the transactions reported in their tax return.
• If the Stewarts have an overpayment of tax, they want it applied to their 2019 estimated taxes.

Roger R. and Michelle N. Stewart (ages 45 and 46) are married and live at 641 Cody Way, Casper, WY 82609. Roger is a consulting engineer, and Michelle is a paralegal. They file a joint return and use the cash basis for tax purposes.

1. Trained as a mining engineer, Roger has developed considerable expertise in the treatment and disposition of waste material. He is also well versed in the Federal and state requirements for land reclamation projects. Roger operates a consulting business through which he advises clients on these matters. Roger's business activity code is 541990. Most of his clients are small and medium-size mine owners/operators located in Wyoming and contiguous states (e.g., Montana, Idaho, Utah). Usually, Roger is retained by a client on a contract fee basis and is reimbursed for all out-of-pocket expenses. In performing his services, Roger usually visits the job site and later submits his recommendations in a written report along with a statement for his services and expenses. Roger received the following amounts from his consulting business in 2018: