"Occupation" on form 1040

Discussion in 'Tax' started by Jay, Mar 12, 2005.

  1. Jay

    Jay Guest

    Does the IRS pay any attention to the "occupation" next to
    the signature on form 1040? TP was earlier self-employed,
    but had no earned income in 2004, likely also into the
    future. Is putting "retired" for "occupation" likely to
    attract undue attention? An alternative is to repeat
    previous years' entry.

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    Jay, Mar 12, 2005
    #1
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  2. Jay

    TaxmanHog Guest

    "Jay" <> wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    The data from that line {paper filed returns} is not entered into the computer
    system.

    The information has limited use to exam & collection processes, revenue agents &
    revenue officers might look at the original filed paper return for details to
    assist in an audit or collection action.

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    TaxmanHog, Mar 13, 2005
    #2
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  3. "Jay" <> wrote

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    Or leave it blank. I suspect that the information, if
    gathered at all these days, is for statistical purposes at
    best, and may influence audit measures at worst.

    --
    Paul A. Thomas, CPA
    Athens, Georgia
    taxman at negia.net

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    Paul A Thomas, Mar 14, 2005
    #3
  4. Jay

    Phil Marti Guest

    "Jay" <> wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention?


    Well, if "Minor Governmental Functionary," which is what I
    used to use, didn't get anyone's attention, I doubt that
    "Retired," which I've used for 7 years even though I had
    earned income in each year, will cause the alarms to go off.

    --
    Phil Marti
    Clarksburg, MD

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    Phil Marti, Mar 14, 2005
    #4
  5. Jay

    Bill Guest

    wrote:

    > Does the IRS pay any attention to the
    > "occupation" next to the signature on form
    > 1040? TP was earlier self-employed, but had
    > no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation"
    > likely to attract undue attention? An alternative
    > is to repeat previous years' entry.


    Not much attention is paid. IMO, the information is
    gathered mainly for statistical purposes, and probably used
    for endless bureaucratic bickering about future tax policy
    <G>.

    Many TPs use "Retired" and still have income from some
    enterprise. It's a state of mind, and it won't attract any
    attention at all.

    Bill

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    Bill, Mar 14, 2005
    #5
  6. Jay wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    Question to one of the regulars: Do you still put
    "drug dealer" as occupation, rather than "pharmacist"?

    I don't think it makes a difference unless the return
    is already selected for audit, in which case a particular
    occupation may make what would otherwise be a problem
    a normal expense. But I don't know.

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    Arthur L. Rubin, Mar 14, 2005
    #6
  7. Jay wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    Leave the space blank. "retired" or "housewife" is not an
    occupation.

    Also, the question is meant to be answered with reference to
    one's current occupation, no matter what he did or did not
    do last year.

    ChEAr$,
    Harlan Lunsford, EA n LA
    Sat 12 Mar 2005

    Moderator:
    I am LoL. Do you have a cite for "retired" or "housewife" not
    being an occupation?

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    Harlan Lunsford, Mar 14, 2005
    #7
  8. Jay

    A.G. Kalman Guest

    Jay wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    It doesn't pay any attention even if you leave the field
    blank. However, do make note that when you sign the form you
    are swearing that the information is true, correct and
    complete. So... if at some time in the future the treasury
    agents come after you for tax evasion and you lied about
    your occupation, the government could use that information
    against you.

    Finally, placing the word "Retired" in that field will not
    subject you to undue attention from the IRS.

    --
    Alan
    http://taxtopics.net

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    A.G. Kalman, Mar 14, 2005
    #8
  9. Jay <> wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    I have no idea whatthe IRS does with the occupation.

    In theory they could set off alarm bells when a RETIRED
    person, and retired is just fine, thank you, files a 2106
    reporting 20,000 miles and lots of meals. Or it could balk
    at a school bus driver taking a $250 educators deduction.
    Some occupations might be expected to have large 2016's??

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Mar 14, 2005
    #9
  10. Jay

    Guest

    How did they earn the income? If from a job, enter what
    they did. If it was from interest, etc. enter retired. The
    info can change from year to year.

    Missy Doyle

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    , Mar 14, 2005
    #10
  11. Jay

    D. Stussy Guest

    Jay wrote:

    > Does the IRS pay any attention to the "occupation" next to
    > the signature on form 1040? TP was earlier self-employed,
    > but had no earned income in 2004, likely also into the
    > future. Is putting "retired" for "occupation" likely to
    > attract undue attention? An alternative is to repeat
    > previous years' entry.


    Not really. It is sometimes used for special projects
    (audits of an industry). I usually leave it blank,
    especially when there's another form that hints at what the
    taxpayer does (e.g. Schedule C). When I worked for the IRS,
    there was never any instruction to us about when it's blank.

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    D. Stussy, Mar 17, 2005
    #11
  12. TaxmanHog wrote:
    > "Jay" <> wrote:


    >> Does the IRS pay any attention to the "occupation" next to
    >> the signature on form 1040? TP was earlier self-employed,
    >> but had no earned income in 2004, likely also into the
    >> future. Is putting "retired" for "occupation" likely to
    >> attract undue attention? An alternative is to repeat
    >> previous years' entry.


    > The data from that line {paper filed returns} is not entered into the computer
    > system.
    >
    > The information has limited use to exam & collection processes, revenue agents &
    > revenue officers might look at the original filed paper return for details to
    > assist in an audit or collection action.


    Ah So! then there's no need to actually enter said data on
    the return?

    ChEAr$,
    Harlan Lunsford, EA n LA
    Sun 13 Mar 2005

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    Harlan Lunsford, Mar 17, 2005
    #12
  13. Arthur L. Rubin wrote:
    > Jay wrote:


    >> Does the IRS pay any attention to the "occupation" next to
    >> the signature on form 1040? TP was earlier self-employed,
    >> but had no earned income in 2004, likely also into the
    >> future. Is putting "retired" for "occupation" likely to
    >> attract undue attention? An alternative is to repeat
    >> previous years' entry.


    > Question to one of the regulars: Do you still put
    > "drug dealer" as occupation, rather than "pharmacist"?


    LOL! I know to whom you refer, and come to think of it,
    haven't seen her around much these days. Do you reckon
    she's really busy?

    ChEAr$,
    Harlan Lunsford, EA n LA
    Sun 13 Mar 2005

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    Harlan Lunsford, Mar 17, 2005
    #13
  14. Bill wrote:
    > wrote:


    >> Does the IRS pay any attention to the
    >> "occupation" next to the signature on form
    >> 1040? TP was earlier self-employed, but had
    >> no earned income in 2004, likely also into the
    >> future. Is putting "retired" for "occupation"
    >> likely to attract undue attention? An alternative
    >> is to repeat previous years' entry.


    > Not much attention is paid. IMO, the information is
    > gathered mainly for statistical purposes, and probably used
    > for endless bureaucratic bickering about future tax policy
    > <G>.
    >
    > Many TPs use "Retired" and still have income from some
    > enterprise. It's a state of mind, and it won't attract any
    > attention at all.


    I have used Grandma, for one client, civil servant for
    another, and employee for many clients.

    --
    Frederick E. Jorden http://Tax-Accounting-Payroll.com
    7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
    EMAIL
    (804) 320-6210 FAX (804) 320-6211

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    Frederick Jorden, Mar 17, 2005
    #14
  15. Harlan Lunsford wrote:
    > Jay wrote:


    >> Does the IRS pay any attention to the "occupation" next to
    >> the signature on form 1040? TP was earlier self-employed,
    >> but had no earned income in 2004, likely also into the
    >> future. Is putting "retired" for "occupation" likely to
    >> attract undue attention? An alternative is to repeat
    >> previous years' entry.


    > Leave the space blank. "retired" or "housewife" is not an
    > occupation.
    >
    > Also, the question is meant to be answered with reference to
    > one's current occupation, no matter what he did or did not
    > do last year.
    >


    > Moderator:
    > I am LoL. Do you have a cite for "retired" or "housewife" not
    > being an occupation?


    But mother is a noble profession. Homemaker is another.

    --
    Frederick E. Jorden http://Tax-Accounting-Payroll.com
    7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
    EMAIL
    (804) 320-6210 FAX (804) 320-6211

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    Frederick Jorden, Mar 17, 2005
    #15
  16. Harlan Lunsford wrote:

    > Moderator:
    > I am LoL. Do you have a cite for "retired" or "housewife" not
    > being an occupation?


    My wife puts has used "patient". No audits yet.

    And "housewife" is quite DEFINITELY an occupation.

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    Arthur L. Rubin, Mar 17, 2005
    #16
  17. "D. Stussy" <> wrote:
    > Jay wrote:
    >> Does the IRS pay any attention to the "occupation" next to
    >> the signature on form 1040?


    > Not really. It is sometimes used for special projects
    > (audits of an industry). I usually leave it blank,
    > especially when there's another form that hints at what the
    > taxpayer does (e.g. Schedule C). When I worked for the IRS,
    > there was never any instruction to us about when it's blank.


    So what about on Schedule C - can you leave that one blank
    too?

    Stu

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    Stuart A. Bronstein, Mar 18, 2005
    #17
  18. Jay

    MTW Guest

    D. Stussy wrote:

    > I usually leave it blank,
    > especially when there's another form that hints at what the
    > taxpayer does (e.g. Schedule C). When I worked for the IRS,
    > there was never any instruction to us about when it's blank.


    I've been leaving it blank for the past few years and have
    encountered no related problems.

    MTW

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    MTW, Mar 21, 2005
    #18
  19. Frederick Jorden wrote:
    > Harlan Lunsford wrote:
    >> Jay wrote:


    >>> Does the IRS pay any attention to the "occupation" next to
    >>> the signature on form 1040? TP was earlier self-employed,
    >>> but had no earned income in 2004, likely also into the
    >>> future. Is putting "retired" for "occupation" likely to
    >>> attract undue attention? An alternative is to repeat
    >>> previous years' entry.


    >> Leave the space blank. "retired" or "housewife" is not an
    >> occupation.
    >>
    >> Also, the question is meant to be answered with reference to
    >> one's current occupation, no matter what he did or did not
    >> do last year.


    >> Moderator:
    >> I am LoL. Do you have a cite for "retired" or "housewife" not
    >> being an occupation?


    > But mother is a noble profession. Homemaker is another.


    Yes, Dick I sure do have a cite. Have you ever seen a W2
    for a homemaker? Or ever seen a schedule C or C-EZ, much
    less a schedule se for such? I thought not. Therefore,
    it's not earned income.

    Agree with Frederick of course.

    ChEAr$,
    Harlan Lunsford, EA n LA

    Moderator:
    So Harlan, mi amigo, when you agree with Frederick, how do
    you accept mother or homemaker as noble professionals to
    be entered as occupations.

    Oh by the way, my brother had a client who wanted to enter
    "Spy" as his occupation. <G> I suggested he refuse to do
    that, but tell the client that "Unpaid Sex Slave" would be
    less likely to trigger an audit.

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    Harlan Lunsford, Mar 21, 2005
    #19
  20. Frederick Jorden wrote:
    > Bill wrote:


    >> wrote:


    >>> Does the IRS pay any attention to the
    >>> "occupation" next to the signature on form
    >>> 1040? TP was earlier self-employed, but had
    >>> no earned income in 2004, likely also into the
    >>> future. Is putting "retired" for "occupation"
    >>> likely to attract undue attention? An alternative
    >>> is to repeat previous years' entry.


    >> Not much attention is paid. IMO, the information is
    >> gathered mainly for statistical purposes, and probably used
    >> for endless bureaucratic bickering about future tax policy
    >> <G>.
    >>
    >> Many TPs use "Retired" and still have income from some
    >> enterprise. It's a state of mind, and it won't attract any
    >> attention at all.


    > I have used Grandma, for one client, civil servant for
    > another, and employee for many clients.


    On a related subject then, many and various tax forms ask for
    a "title" when the preparer signs the form. I use different ones,
    such as "chief", "czar", "head(man)", whatever comes to mind.
    Just today signing a city property tax return I used "Prince".
    Oh; need to remember to use "Sir" next time. right.

    ChEAr$,
    Harlan Lunsford, EA n LA
    Sun 20 Mar 2005

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    Harlan Lunsford, Mar 21, 2005
    #20
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