Accountants Who Come To Us For Guidance
David M. Kaufmann, CPA
2831 Wyecliff Way
Highlands Ranch, CO 80126
PO Box 632285
Highlands Ranch, CO 80163-2285
The IRS agent will try to first make you feel comfortable.
Then the IRS agent will try to intimidate you.
My client had over $25,000 of medical expenses. A
good part of the expenses were from nursing homes since both husband and
wife were unable to take care of themselves.
Here is a recent exchange that I had at the beginning of
the IRS audit:
IRS Agent: (Acting dumb...) "I thought
nursing home expenses are not deductible." [This is where
the IRS tries to intimidate me.]
Me: (Respectfully turning the tables on
the IRS...) "According to Internal Revenue Code Section 213(d)(1)(C),
nursing home costs are deductible if they are define as long-term care costs in
Internal Revenue Code Section 7702B(b). For your reference, here are
copies of Internal Revenue Code Sections 213(d)(1)(C) and 7702B(b)." [I
am now politely intimidating the IRS Agent. Most, but not all agents,
don't know one Internal Revenue Code section from another.]
IRS Agent: "Thank you."
Needless to say, the IRS agent didn't try anymore
intimidation tricks on me. Furthermore, she agreed to any additional
arguments that I made for the benefit of my client. I backed those
arguments up with solid legal documentation.
If my client's daughter represented her parents instead of
using me, there is a good chance that her parents would have lost their huge