Income from business or profession


Katarina (Katie) Helpful was approached by a friend, Bob T. Builder, to help him complete his income tax return. Bob believed in Katie - after all, she had helped some of his friends on their tax returns. Katie completed Bob's return and Bob was happy that he was receiving a refund of $1,500. He was even more impressed that Katie did not charge for her services. He trusted Katie so he didn't look at the return carefully until he received the refund check in the mail. At that point, he realized that she had claimed deductions on his Schedule C (Income from Business or Profession) that he was certain he hadn't paid.

Required: Can Katie, who didn't sign the return, be charged with any Title 26 or Title 18 code sections? Why?

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Accounting Basics: Income from business or profession
Reference No:- TGS047906

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