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John is a writer who writes children’s books. John asks the accountant to file his income tax returns. He hands the accountant approximately $400 worth of restaurant bills. He tells the accountant that the receipts are for deductible business meals. The accountant does not inquire further and files a return claiming the meals as ordinary and necessary business expense. The writer is audited and tells the Service that he thought the meals were deductible because he worked on his book in the restaurant while he was eating the meals. The Office of Professional Responsibility calls the accountant and asks him to explain his actions. Is the accountant in trouble? Does the taxpayer have any possible penalty exposure?
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