Taxprohere
Level 7
02-17-2025
01:54 AM
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Preparing a return knowing (or not objecting to) the taxpayer claiming or not claiming expenses to generate a higher EIC is an ethical/Circular 230 violation. On the flip side, can't claim expenses without documentation aside from where the Cohan rule may apply. A cautious path to tread.
(And to emphasis, this isn't directed to Bob, he's just pointing the tax effect possibility.)