GeneInAlabama

>>Taking your small children to an IRS Audit is NOT recommended. Pay for a babysitter, this is serious business not a walk in the mall!<< No, it is NOT recommended. As a former tax auditor (many years ago), I have seen it happen a number of times. I have to say that I wasn't very sympathetic with a family that had small children running around the office getting into things. I put up with it to a degree then and I still have to put up with it now in preparing returns for people who bring their children with them. While I should charge more for clients like that, I have never had the fortitude to do it.

I don't know how it is now, but it used to be that the IRS would NEVER notify anyone of an audit by phone, it was ALWAYS by mail. My understanding has always been that you could take anyone with you to an audit, they just didn't have any authority to do anything unless it was the preparer, an EA, CPA, or an attorney. I have seen people take their small children with them on an audit.

I have used Medlin for several years now and it is a very good program if you don't need to use it on a network. I use the general ledger, payroll, and accounts receivable modules and they are very inexpensive. I believe their website is www.medlin.com.

I just bought a new computer with windows 7 and it has been giving me fits. My 77 year old brain just can't keep up with the technology and I can't upgrade my brain. Looks like I am about to be forced into retirement.

Thank you Jainen. I thought I would have to force itemized deductions in order to carry it over. I was away from this board for a while because I had to replace my ancient computer (8 years old). Now I'm having to learn how to use windows 7.

Thanks Judy. I just don't remember ever hearing it referred to as that.

Please excuse my ignorance. Would you explain what the single payer system is? I don't think I have ever even heard the term and didn't know that Canada has one. I may be the only one on this board that doesn't know that, but what I don't know, I don't know.

I always give a copy to my clients too. They pay me to prepare their return and that is part of the return even if the IRS doesn't require it to be sent to them.

Thanks Marilyn and KC. This client is self employed and had a large profit in 2010 and a loss in 2011. In rechecking the return, I saw that we can file an amended return and force itemized deductions and he still won't owe any tax and he can carry the charitable deduction forward. Also, the former preparer didn't figure the NOL which we can carry back. I also saw that he listed $39,000 of wages (payroll taxes were paid and W2 issued) as contract labor and he showed $44,000 as misc expenses. Gross income was $292,000. He also had $36,000 depreciation listed on the sch C but I don't have a list of assets. I hope I can get that from the previous preparer. Looks like I'll have a lifetime client once I get this streightened out.

I have a new client that for 2011 had high contributions but did not have enough other expenses to itemize and it looks like it will be the same again this year. I don't recall having this situation before. I know that if he itemizes, he is limited to 50% of his AGI but what if he doesn't itemize? Does he lose all of it? And if part of it can be carried forward, how do we do it and how much? It doesn't seem right, but then I know there is a lot about taxes that isn't right.

Tom, you make some very good points, but to have freedom, "someone" has to control that freedom or else there would be total anarchy. I don't want my neighbor to have the freedom to kill me or steal from me. As for the subject of this thread, if my ability to protect myself and my family is limited as to the methods I can accomplish this, my freedom has been fringed upon. Criminals DO NOT obey laws and a law that limits firearms only limits honest people.

I only want to add one other thing to Catherine's excellent response. To not protect ourself is our own business, but to fail to protect someone else that we could protect is inexcuseable. I wouldn't want that hanging over my head.

When I retire from taxes, I plan to go into the chicken business. I'm going to buy me a hen and about 50 roosters to get started.

Alabama state returns are totally separate from the federal. I have some clients that file a federal but not a state, and some that file a state but not a federal. Most of those who file a state return are able to itemize even though they don't have enough to itemize on the federal.

I have a neighbor who is on total disability but worked as a brick layer's laborer and paid under the table while "disabled". He now installs swimming pools doing most of the work himself and still draws a check for total disability. Oh, and I have heard from a reliable source that he sells the pain pills that he doesn't use for himself.

HR Block would find ways around the RTRP. They seem to have favor with the IRS.

>>If I had the ability I would tell the N. Korean dictator to aim his missiles at Georgia right now!<< PLEASE don't. I'm in Alabama and he might miss.

>> "Oh, just put me down for the standard charitable deduction"<< Just say "OK, that would be zero".

I have my doubts about someone just finishing pharmacy school and being able to succeed by immediately going into business for himself unless he has had prior business experience in a pharmacy. Just my opionion and has nothing to do with the original question.

P.S. In my younger days I have made appointments as early as 4:00 AM, but that was at the END of my day. After the appointment, I went home and went to bed.

The hardest thing I do every day is to get up in the morning. Once I accomplish that, the rest of the day goes by pretty good. The earliest I ever make an appointment for is 10:00 AM. Most of the returns I do are drop offs.

>>How is 4/15 at 6pm tax appointment for taking a chance? Longtime client is out of country on business, returning Sunday night. Could not get hold of him for 2 weeks. His son calls me and says to hold that slot open for his Dad because he believes we can just make it! The extension form will be pre-printed!<< Why not go ahead and file the extension? That way you don't need to worry about it. I have already filed extensions even on the ones I expect to have completed by the 15th. You never know what might happen between now and the 15th.

Thanks everyone for the replies. I need to find out more information from the client about exactly how this house will be used. I have never had anything like this come up before.

Extending is good insurance. It is easy and quick to do and won't hurt a thing if you do file on time, or even if the return is not filed at all or has already been filed by another preparer. Extend and file on time if you can, if you can't you have nothing to worry about.

A new client has gone through drug rehab and wants to help others. He has purchased an old house and is fixing it up to be used for others going through the program. He will not be living in this house himself. Does anyone have any suggestions how this can be deducted on his taxes? I suggested that he might give the house to the rehab organization, but he wants to retain ownership. It is his way of repaying for the life that was given back to him. The client is in the remodeling businss. Any suggestions would be appreciated.