Tallie LLC questions 1-31, #16

Your clients can deduct whatever they pay you for your services (assuming that it is a deductible business expense for them) and for whatever they pay you as reimbursement for expenses.

But, in general, no -- you do not need to be concerned about how your clients report their tax information. You do want to make sure that the 1099s they give to you (if any) are accurate and reflect the money they actually paid to you. Copies of those forms are sent to the IRS and the IRS will expect to see that income reported on your tax return.

Thank you for participating in this event!

-- KimberW

In addition to what KimberW has posted above, if you know your client is deducting reimbursed expenses on their taxes, this is considered fraudulent activity as they are double dipping and getting credit for an expense that was already reimbursed to them.  

Please see this link to report this to the IRS if you suspect tax fraud.