Sarah York, EA

Tax girl, amateur painter, nap enthusiast.

[Sarah York, EA @SarahYork95]

@mountainwesttax Say it louder for the people in the back

[Logan Graf @LoganGrafTax]

Accountants 🎯

[Logan Graf @LoganGrafTax]

IP PINs for everyone next year!

https://t.co/s4rp2RWKr8

[Sarah York, EA @SarahYork95]

Does anyone no a good person for Payroll referrals? DM me! I learned my lesson the hard way and am looking to refer-out going forward

[Sarah York, EA @SarahYork95]

@CPATaxTeam Couldn't agree more!

[Brandon Hall @bhallcpa]

A small business owner claimed tax write-offs of:

• $1,800 for haircuts and manicures
• $2,569 for gym memberships
• $830 for cell phones
• $4,615 for clothing
• $278 for laundry

But the IRS audited them and claimed these are not business expenses.

Who was right?

The case is Tilman v. United States, 644 F. Supp. 2d 391.

Many things were covered in the case but I'm going to focus squarely on the above deductions.

Here's what the court had to say about each expense:

→ $1,800 for haircuts and manicures.

"Haircuts are nondeductible personal expenses even when required as a condition of employment.

The same is true for manicures, because such expenses are inherently personal in nature and suitable for general occasions."

→ $2,569 for gym memberships

"Participation in a weight loss program can be a deductible expense when it is done for medical reasons, however, taxpayer's membership to a weight loss club is not a deductible expense. It is a personal expense.

The cost of an individual's participation in a weight reduction program that is not for the purpose of curing any specific ailment or disease, but for the purpose of improving the individual's appearance, health, and sense of well being, is not deductible as a medical expense."

→ $830 for cell phones

"Taxpayers are not entitled to deduct expenses for cellular phone usage, since they failed to provide sufficient evidence to corroborate their assertion that the cell phone was used for business purposes."

→ $4,615 for clothing

"For clothes to be deductible, they 'must be of a type specifically required as a condition of employment, and they must not be adaptable to general usage as ordinary clothing.'

Taxpayer's own description of the outfits she buys suggests that they do not qualify for a deduction. Beautiful gowns and cocktail dresses are a staple in many women's closets, as are earrings, necklaces, bracelets, brooches, rings, and watches. Her belief that she can only wear these items when she attends concerts and not in any other setting is irrelevant.

As long as other people would wear such clothing in a variety of settings, the clothes are not deductible."

→ $278 for laundry

"These expenses are not deductible for the same reasons the outfits themselves are not deductible."

The next time you see TikTok tax advice saying any of these are deductible, point them back to this post!

[Brenda Cannon, CPA @bsuecannon]

Let’s normalize extensions.

[Sarah York, EA @SarahYork95]

I know it’s early, but I just registered for the @NATPTAX annual forum in September! This will be my first time visiting Los Vegas. I’m not sure if I should be embarrassed or proud that it took a tax seminar to get me there 🤓 If anyone else is going, DM me!

[Sarah York, EA @SarahYork95]

*Clears throat*

🎶If you’re not ready and you know it just extend 👏👏

If you’re not ready and you know it just extend 👏👏

If you’re not ready and you know it then your forms will surely show it, if you’re not ready and you know it just extend 👏👏🎶

😂 #TaxTwitter

[Sarah York, EA @SarahYork95]

@taxpreptech I had 20+ clients referred to me by a retiring (non credentialed) preparer, who added phony Sch Cs to all their returns. He didn’t even pretend they had income, most had no idea they filed a Sch C. All were very upset to owe for the first time in 40 yrs 🫠

[Sarah York, EA @SarahYork95]

@seattle_tax Sure!

[Sarah York, EA @SarahYork95]

Golf courses need to sell “student driver” shirts for beginners. It’s obvious I’m new, but I’d like to communicate to my fellow golfers that *I* know I’m new, and that I’m sorry for my overall incompetence it’s not intentional 😅

[Sarah York, EA @SarahYork95]

@seattle_tax Rookie move, always feign weakness 😂

[Sarah York, EA @SarahYork95]

@mkoontz328 @natesosa_CPA I'll have to checkout Tax Discord, but I agree there's so much to keep up with already. Having a collaborative community would be awesome though - a rising tide floats all boats!

[Sarah York, EA @SarahYork95]

@jennyrozelle I got a new client this year, wife is an engineer and handles the finances, husband's a school teacher. Prior CPA had listed him as the primary even after she asked him to change it. The look on her face when she got MY return back. No issues with the IRS.😃

[Sarah York, EA @SarahYork95]

@wifemomcpa100 @mountainwesttax 😂

[Sarah York, EA @SarahYork95]

@cordes_tax @jhadawayfc Ditto @cordes_tax on public awareness. I get a lot of pushback, even though having a CPA wouldn't materially change the services i'm able to give (tax and tax advisory). I think this is gradually changing, but it's an issue to be aware of.

[Sarah York, EA @SarahYork95]

@bsuecannon I would purchase! The people pleasing tendencies take over too quickly.. If you give an inch, they take a mile

[Sarah York, EA @SarahYork95]

Nobody:

Accountants this week: *Aggressively rev engines* 🏎️🏁

[Sarah York, EA @SarahYork95]

@LoganGrafTax Had a chat with a prospective client today who has a few s-corps, his cpa is retiring. I told him Turbo charges $1,700. He was shocked. His CPA charges $600 🙈