8 outlandish tax deductions to skip in 2014
The flags and cones should be a tipoff
Hilarity ensues when taxpayers attempt to deduct the services of call girls. Some attempt to write their wrongs off as T&E, or travel and entertainment, expenses, others as consultant fees. We've even featured one client who dropped the whole idea when his accountant demanded that the lady in question fill out a contractor Form 1099 to support his "business expense."
Tom Parr, a partner in Parr & Jones CPAs in St. Louis, couldn't resist sharing a nod and a wink with the IRS one particular time.
"I used the phrase 'escort service' as a deduction on a return. I couldn't resist," Parr says. "The company moved houses and structures and hired cars with lights and flags to go before and follow the transports as escorts."