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Hello all,
I flew out of state to do locums work in a hospital twice a month, for about 4-5 days at a time (so about 8-10 days a month), during 2016, while holding down a full time job (as a fellow). I was offered the job because a full-time physician had lost his license, and the hospital was desperate for someone to fill in. They found a replacement by August 2016, but I continue to fly there twice a month, but now I don't do locums work there, I just bill on my own for other docs who need weekends off, etc. My travel expenses totaled about $25k (flights/meals/taxi's etc) for 2016. My accountant said he would only count $11k of that, due to concern that the deductions would be flagged, because of the following reasons in his response to my e-mail to him about this today:
"If IRS looked at your return as it stands I think you would have significant exposure with regards to the rest of your Meals & Entertainment as well as your travel expenses. According to IRS, travel arrangements between two permanent worksites (permanent defined as worksites that do not have an anticipated or well defined end date) are considered commuting expenses and are not deductible. You are a bit of a unique situation in the sense that your two work sites are halfway across the country from each other but in discussing your situation with the other accountants here, there is broad agreement that IRS would have a strong case to throw out your travel expenses. Obviously if IRS ever examined you we would mount a vigorous defense but I just don’t think it is a good idea to poke at this."
What do you guys do in scenarios like this? Should I just amend the return myself? I feel I can argue for all of these expenses to be deducted (I am just a fellow trying to pay my off my loans for God sakes), but want to maintain my relationship with my accountant (though, depending on the responses I get from others here, I may consider switching).
I flew out of state to do locums work in a hospital twice a month, for about 4-5 days at a time (so about 8-10 days a month), during 2016, while holding down a full time job (as a fellow). I was offered the job because a full-time physician had lost his license, and the hospital was desperate for someone to fill in. They found a replacement by August 2016, but I continue to fly there twice a month, but now I don't do locums work there, I just bill on my own for other docs who need weekends off, etc. My travel expenses totaled about $25k (flights/meals/taxi's etc) for 2016. My accountant said he would only count $11k of that, due to concern that the deductions would be flagged, because of the following reasons in his response to my e-mail to him about this today:
"If IRS looked at your return as it stands I think you would have significant exposure with regards to the rest of your Meals & Entertainment as well as your travel expenses. According to IRS, travel arrangements between two permanent worksites (permanent defined as worksites that do not have an anticipated or well defined end date) are considered commuting expenses and are not deductible. You are a bit of a unique situation in the sense that your two work sites are halfway across the country from each other but in discussing your situation with the other accountants here, there is broad agreement that IRS would have a strong case to throw out your travel expenses. Obviously if IRS ever examined you we would mount a vigorous defense but I just don’t think it is a good idea to poke at this."
What do you guys do in scenarios like this? Should I just amend the return myself? I feel I can argue for all of these expenses to be deducted (I am just a fellow trying to pay my off my loans for God sakes), but want to maintain my relationship with my accountant (though, depending on the responses I get from others here, I may consider switching).
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