Discussion 3-1.docx - Your client Sam is a small business...

This preview shows page 1 - 2 out of 2 pages.

Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. How would you explain the tax law related to the deductibility of expenses to Sam? Why are some expenses not deductible? Provide an example of an expense to support your response. When responding to your peers’ posts, provide an alternative example of where Sam might have an expense disallowance. Also, explain what actions Sam could take to turn a disallowed expense into a deductible expense. I worked as a Revenue Officer for the Internal Revenue Service in the Small Business/Self- Employed Division. Part of my job was to educate taxpayers and Power of Attorneys about owning a business, which included federal tax deposits, preparing and filing quarterly and annual employment tax returns (Forms 940, 941, 944, and/or 1120), and IRS policies and procedures.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture