Your Client Wants to Deduct Commuting Expenses on His Tax

question 23

Essay

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

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Definitions:

Consent Restraint Provision

A clause in a contract that limits a party's actions based upon agreed terms, which is enforceable only if all parties consent to it.

Statutory Solutions

Statutory solutions involve solving legal, social, or economic issues through the enactment of laws or statutes by a governmental body.

Close Corporations

A designation for corporations with a limited number of shareholders and operations that are more informally managed, often without a board of directors.

MBCA

stands for the Model Business Corporation Act, a model set of laws prepared to assist states in drafting their own corporation statutes.