IRonMaN
Level 15
02-29-2024
01:04 PM
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Folks often like to bump up income and then back it off to avoid a potential IRS notice. But often they don't realize those bumps can have other effects with state or local entities. Tips are not income and sales tax is not income so I would never go the bump up route. I would prepare the return the correct way and just alert the client that it is possible to receive a notice but they don't need to sweat it.
Slava Ukraini!