Pacun

I fix computers for a living and this is my advice. Purchase a new monitor, if problem persists, purchase a new computer. Whoever has a computer that is 3 years old, should purchase a new computer if you start having problems with your equipment. Not only your 3+ years old computer runs slow but also you will get other issues down the raod. By the way, the company that I work for depreciates computers on a 3 year schedule. I was under the impression that computers are listed property 5y.

Monitor is the way to go because it is easier and less expensive. Even if you are wrong, you will have two monitors that your new computer (if you end up going that route) will be able to use.

I got my solution this way... I started at the top of the page and then rolled my mouse. My cousing was more creative and pressed page down.

Monitors are not expensive anymore, buy a 19" LCD. If the problem is your computer, them just order the CPU since you already have a new monitor in stock. Do not spend those $50 on used monitors.

He also included the cost of IRS audits since the code is so complicated.

Yes, I know I misled you but we learned a lot from that experience. I am sorry for misleading you and that's why I said, "don't take it personally, this is strictly business". We all learned something from my posting and we are better equiped if a similar situation knocks our office's door. In this case, two institutions made a mistake, the retirement office by sending the checks to the old address and the bank for allowing ATM deposits of third party checks. A lot of banks allow that though. You guys are good detectives and cornered me and forced me to tell you the truth.

I appreciate your replies and trust me, if the check was bigger and this lady decided to close the account and go back to her country, I would have a police report with all the information I said, including but not limited to, prior marriages, dates of divorce, next of kin, but no thief or the money. The IRS would have a 1099-R and rightly wanted its taxes on the money.

I agree with you AND I always suggest UPS to eveybody but it is more important to back up your data. As I said before, I have never used a UPS and I always hold down the power buton for a few seconds to power down problematic computers. I have never had problems with my FAT being reduced or taken away.

Don't take it personally, this is strictly business. When I said, these are the facts that I want to use to present my case, I meant to present my case here on this forum. ******************** ******************* ********************* ******************* **************** This is reality. Client requested retirement payments in August 2006. Checks were sent to the address of record and NOT the one we used to request the funds. Client thought that because he was still working no checks were sent, until he came in April to do his taxes without the 1099-R that I was expecting. 11 checks were sent to a very old address, he lived there 5 places ago and 11 years ago. 3 checks were cashed by the owner of the house 8 checks were stopped payment (no one tried to cash them) and were reissued last month. Retirement office sent copies of the cashed checks to client and I confronted the owner of the house who forged my client's signature and deposited the checks and I gave her 10 minutes to reimburse my client or else (meaning I was going to call the police, FBI, the bank, and the postal inspector and any other authority I deemed necessary at the moment). I got the money on the spot and took it to my client. My client was sent a 1099-R last year for more than 2K which he never receive; but, we have not filed taxes for 2006 yet (we requested and received a second 1099-R from retirement company). I am going to include the 1099-R on his taxes and everything should be in order. This is the same person that is about to loose his home and therefore all we wanted was the money back and quickly from the thief. My client has more home interest and points to cover any taxes owed and also he has $5K first time home buyer credit in DC that he will never be able to completely use. Now, for a moment I thought, what if instead of 2k, the check was for $200,000 and the thief has closed the account and start enjoying life in her native country? This board is to clear any doubts and that's how I wanted to present my case here on this forum.

By no means, I will think that you or your suggetions are argumentative. I know all of you have a genuine intent to help. Yes, those are the facts presented.

Well, On August 1, at 3:33PM I said "Thief was not related to my client." Yesterday at 9:34am, I said "By the way, have you seen those houses where there is a box next to the door where the mail person deposit the mail? No need to break anything in order to get the mail... that's the standard throw out the U.S., isn't it?" I do understand your concerns, but I am making my case based on these facts. I do understand your points and you are doing a good detective work. Thank you all for giving ideas.

Since there are no witnesses to the action... it is assumed that the thief got it from the mail box outside the door.

When a laptop freezes... (all the time) I hold the power buton for 35 seconds and when it wakes up, both FAT and I are FAT. New technologies are not like the old ones that you had to wait 1 minute before rebooting because even if the power was out, the hard drive and other peripherals were still spinning and rebooting right away could damage your FAT.

Yes, police has picture of the person who stole the money, signature, namem address, date of birth, social security number, dates of prior marriages, and dates of divorces, next of kin... there are two critical pieces missing on this case... once those two pieces are found, the case will crack open. The two things missing are: the thief and the money. Not the same name and not related to my client. I like the idea that NOL can be carry backward to the year in question... any other thoughts?

The police will let us know as soon as the catch the thief, they got my client's phone number, home, cell, day, night, etc. They also got my client's email address, they know where he lives and entertains himself. They also know his next of kin. As you can see, what the police said is almost irrelevant. The relevant part is that a police report was filed. Client will not benefit from NOL (whether passive or not) because of limited income, nor will he benefit from itemizing deductions. So, I am left with... going after the bank and its lawyers? Remember, client does not have money. Everybody agrees that the IRS is right and that my client has to pay more than $100,000 in federal and state taxes, interest and penalties. Any other thoughts or questions? Thank you for replying.

I am assuming that tax payer is U.S. Citizen. She will stop being a Virginian when the reliquish to any ties to VA. So if she has a house, car, boats or any other ties to VA(register to vote, driver's license, CPA license, etc), she might be considered a Virginian. If you do not have any ties to a state, you are free on the very first day you move out. This is from the top of my head.

My original post was made yesterday at 3:16EST. I provided 3 replies to questions yesterday. Today when I woke up, I provided more answers to questions possed. We are going to the right direction but I know a lot of us would like to see a solid answer. I like the idea about going after the bank that allowed the deposit. I have noticed that some banks do not allow you to deposit someone else's check but some other allow this type of transaction. If this person would be working for the next 65 years, 3K yearly of passive NOL would be perfect. Unfortunedly, life is too short. It would be nice if this person had a bunch of money making money so that passive NOL could be use up earlier, but that's not the case either.

Can you break down the benefits of Theft or NOL if (as KC correctly pointed out) his basis is 0? Also consider that this client will no longer work. Based on all the answers I am getting, I have the feeling that everybody, except for Zeke, is saying... you lost your money and now you have to pay more than 50K to the IRS and more than 15K to the state. I feel that you are telling my client... since you are wrong, not only you lost your money and have to pay the IRS and the state BUT YOU ALSO are responsible for paying interest, penalties for not paying and penalties for underreporting your income by more than 75% and other penalties as the IRS and state WISH to impose on you because IRS is right and you are wrong. Am I correct, or I just got you offguard with this question? Which one is it? (Please do not think that I am taking this personally, "this is strictly business", Nice quote, isn't it? lol). PS. Thank all for reading and answering my post, I appreciate your efforts.

Client contacted Retirement office and was told that there was nothing they could do because the check was cashed. They sent my client a copy of the check showing that it was signed (supposely by my client) and deposited to the thief's account. They suggested that we filed a police report and we did. We contacted the bank, and they said that the deposit was made on an ATM and that they followed the government rules and therefore, NOT responsible. By the way, have you seen those houses where there is a box next to the door where the mail person deposit the mail? No need to break anything in order to get the mail... that's the standard throw out the U.S., isn't it? IRS has a 1099-R from the retirement company and needs my client to pay taxes on that money reported to them.

You mean that he needs to pay taxes on $200,000 since IRS has 1099-R? That's the answer I am getting from everybody since his basis was only 8K and there is no way he can itemized with only that loss. So, not only he lost $200,000 but he also has to pay taxes on it? Keep in mind that he did nothing wrong.

Thief forged his signature and deposited check on thief's account. Keep in mind that his basis was 8K.

Thief was not related to my client. My client invested $8,000 on this retirement account when he was a teenager. Hi is now 70 years old. He does not have any other itemizable deduction on the year in question.

The first state you start milking is the one with more money on your unemployment account.

Client asked for a lump sum retirement, had an emergency and traveled for more than 2 months. Check for $200,000 was sent to his house was deposited by someone else. Person that deposited check closed account and dissapeared. IRS wants his share of the $200,000 reported on 1099-R. What would you do if client came to you with these facts?

I like when Jainen comes hard on some of us because, believe me, I will never forget what was learned from that posting. This one seems to be one of those.