We picked up a new client this year that will not be returning next year, he isn’t even a real client this year. We did not submit his tax returns.
This gentleman gave us his documents and we prepared financials for him. He did not like the results, he made money, a lot of money and paid nothing in estimated taxes.
So, he tried to get us to write off as his home office his girlfriend apartment. He gave her money for rent and so he wanted that to be a business expense. We explained that this was not possible. We went back and forth, and I told him, the only way I would take it as an expense is if we 1099ed the girlfriend for the income. He did not want to do that, so he dropped it.
Then he stated that the income was wrong, and it had to be reduced significantly. I asked him which deposits into his business account was he disclaiming and then I needed and explanation why it was deposited into the C-Corp account in the first place.
I have had people make outlandish requests in the past and we talked them out and they saw reason. That was not the case with this one, we were not a good fit for him, so we parted ways.