Chewbacca Costume Receipt Beats IRS Audit

Tax story time....

JT's first gig at a tax firm a decade ago had a lot of clients that were actors and comedians. Swear. This was in west LA and the head CPA there was the accountant for a comedy club. So every time a comedian needed a tax guy, where did they go? Every time an actor needed a tax guy, where did they go? To this firm JT worked at. 

One thing that's common in Hollywood.... everyone is 1099. Actors, comedians, a lot of entertainment is 1099 work. Why? I don't know. I'm sure there's a reason, but it's not relevant for us right now. 

And so one year, a client at that firm got audited by the IRS because... well... most people don't try and write off Chewbaca costumes. And things like that have IRS auditors salivating at the lips. 

Well, thankfully this client had receipts and a copy of his contract for the acting role and sure enough, the auditor threw his hands up like "dammit, next!"

JT's old job and this client won the "no change audit" which JT explains a little more here, https://www.youtube.com/shorts/Dt1i_UXeEtM 

So to answer your question, yes, you can beat an audit. And sometimes the audits make sense from a 30,000 foot level but once you get into the details, it's clearly legit, which was the case here.

Enjoy JT describing a Chewbaca costume as a legit business expense, https://www.youtube.com/shorts/Dt1i_UXeEtM