My expected roll in this is "paid tax preparer". I would be signing it. The attorney only helped with the P&L and he does not prepare tax returns.
Why are you out?
I wouldn't want to risk that my lack of experience with knowingly putting estimates on a tax return will cause me to do so improperly and possibly lead to sanctions or penalties form the IRS as the preparer.
Have you explained the idiocy of putting numbers rounded off to the nearest thousand on the return?
No, although it sounded a bit crazy to me at first also, I figured that he would know what he was doing and that it was best not to try to hide the fact that there are some estimates involved.
tell him you need more accurate estimates
According to our conversation, there are many gaps in the (personal) statements and so the attorney is filling in some blanks with reasonable estimates. There are no business statements and no way to be more accurate.
Also it might pay to mention that there are no real 1099s of significance, and the income is being estimated as well (from the deposits, and for all I know, what the mechanic took in cash). The taxpayer did not receive a letter and there have been no requests for his tax returns, he just came forward because he wants to be up to date on his taxes and not "off the grid". Also, apparently, in my friend's words, he is "not capable" of preparing his own books.
So in my opinion the same thing will happen in another 3 years and we are just enabling him. Or that the system has failed this level of less-sophisticated self employed individuals. I'm not sure which is correct, but that's besides the point.
The point is that I don't know what I'm doing when it comes to estimates on a schedule C and I don't want to risk my livelihood. I worked REALLY hard to get where I am now, as we all did.
I didnt send the letter though.