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.
"Jay" wrote
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
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
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 . 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
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.
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?
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
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 $250 educators deduction. Some occupations might be expected to have large 2016's?? __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
How did they earn the income? If from a job, enter what they did. If it was from interest, etc. enter retired. The info can change from year to year. Missy Doyle
Not really. It is sometimes used for special projects (audits of an industry). I usually leave it blank, especially when there's another form that hints at what the taxpayer does (e.g. Schedule C). When I worked for the IRS, there was never any instruction to us about when it's blank.
Ah So! then there's no need to actually enter said data on the return? ChEAr$, Harlan Lunsford, EA n LA Sun 13 Mar 2005
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
I have used Grandma, for one client, civil servant for another, and employee for many clients.
-- Frederick E. Jorden
But mother is a noble profession. Homemaker is another.
-- Frederick E. Jorden
My wife puts has used "patient". No audits yet.
And "housewife" is quite DEFINITELY an occupation.
So what about on Schedule C - can you leave that one blank too? Stu
"Other" is what I always look for first when confronted by a list that shows the organization of my bedroom floor.
-- Phil Marti Clarksburg, MD
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