Here's the show ...
... and here's an article that lists H&R Block as one of the remaining advertisers:
As an outraged parent and citizen, I urge H&R Block to pull its ads from this despicable show.
The MTV ploy did not work. WSJ 01/26/2011 headline " "SKINS" Audience Sinks 51%". What does that mean? It may mean that young people today have all the sex and drugs they want and feel no need to watch a television show about it. MTV looses,good deal!!!
Documentation would be somewhat of a problem for cost of goods sold, in most cases. I suppose if the wholesaler allows the use of debit cards (unlikely) it would suffice. Most would have a pretty nasty return check fee, dontcha think?
"Have you had a client deduct adult adult toys and ointments as a business expense?"
Back in California I has a sweet young woman ask me if she could deduct HIV tests as a business expense. Since she listed her occupation as a self-employed model, I said sure.
"In the case of drugs, no deduction is allowed."
Not so! Drug dealers can deduct cost of goods sold (seriously, look it up). But that's it. No deductions for packaging materials, runners, guns and ammo, and whatever else. I hope you haven't done many returns for these people, or you'd owe a whole lot of amendments.
In my decade and a half of doing professional tax prep, I've never had a single client who listed their occupation as drug dealer, extortionist, hit man, pirate, etc. Is it only the high RAL offices that get all the excitement? Do these people even need RALs? :)
When people get thrown in jail or prison for whatever, the IRS may come after them for income in relation to the misdeeds. In the case of drugs, no deduction is allowed. However, in most other cases ""ordinary and necessary" expenses may be deducted (e.g. prostitution).