Terry D EA

This link may help. As you probably know, there are varying requirements based on what type retirement plan the RMD is for. There are different rules for IRA, Roth and SEP. The 403B & 401K are different based on retirement. http://money.usnews.com/money/blogs/on-retirement/2014/04/07/5-things-you-should-know-about-required-minimum-distributions

Thanks Tom. The community ended when they filed for legal separation and they are now divorced. The major issue at this time it the ex-spouse is filing for custody of the minor child and the ex's lawyer is bringing all of this into the equation. I am not going to advise anything here as again this is involving State law and specifically tax law. I have always been under the impression that no court judge could overrule the IRS or order a disposition that is contrary to the IRS regs. Again, I think this is a scare tactic and an attempt to confuse. My client cannot afford an attorney. They have had one in the past which changed the tone of things. They are contacting that attorney and trying to make some type of payment agreement. From this point, I am staying out of this. This situation is near and dear to me. Because this is a public site, I refuse to make any further connections or indications as to who this client is and am leaving out many details. Thank you for the advice of being careful. Judy I appreciate your replies but again, this divorce is final.

After some research, I have found the MFS tax filing does not hold the non-liable spouse liable for the liable spouse's debt. An innocent spouse form may be needed. These rules are complex at best and there are indications of some circumstances where the IRS may levy on the non-liable spouse but there is relief for the non-liable spouse as well. So, for clarification, the lawyer in this case is using scare tactics to get my client to pay their ex-spouses tax debt. There is nothing relating to living in the same household when the tax liability was incurred as a determining factor for liability. Here is the publication I found. I know publications are non- authoritative, but this pub does have CFR regulation codes for further review. Could be useful information for all on this board. https://www.irs.gov/irm/part25/irm_25-018-004.html

A client who lives in a community property State, (CA), filed a MFS return for 2015. All of the rules regarding community income, expenses, etc; were followed. The couple were in the process of separating at the time. My client is being told by their now ex; that the amount they owed is considered community debt and my client now owes half of what the ex spouse owes. This seems to negate the right to file MFS. Has anyone ever dealt with this? Is there any basis for the ex spouse's claim? The ex spouse's lawyer is stating that because they still lived together in the same residence, my client is responsible for half. I have to say that I am not well versed on community property State rules on income and debt, but again this seems questionable at best.

>>>>>I go with cash basis taxpayer. You don't have income until received. I would put it in the year it hit the checking account.<<<<< I would take the same position as Tom.

Catherine I would just amend the return. By your post, no depreciation to correct and no method of accounting has been established.

I could see Sch E if the building was owned under the structure of a LLC and not her personally. Had a client in the past that was setup this way. Taxed as a disregarded entity. The CPA prior to me set this up, filed form 1065 and the IRS sent letters correcting the filing requirements. Other than this structure, I agree with cbslee and don't think it is right either.

Box 1 wages as I read the pub, which, I have also done.

Well I for one couldn't understand why the PTIN number that I have had since forever, FREE became an item I have had to pay for, well I guess, since 2010. It would be nice to see a refund of those fees. On another note, I think the IRS should develop some type of plan that is "legal" to critique tax preparers. The general public who pursue the use and advise of a tax preparer has the right to know the individual is competent. This should apply to ALL and not automatically eliminate the CPA's and Attorney's. They too should show competence and do make as many, if not more, mistakes than others. JMHO

Some of you may remember my posts regarding a Ponzi-Scheme, that one of my clients had gotten into that their preparer had incorrectly claimed a loss when indeed this was a casualty theft.. After some significant research and study time, I compiled the necessary paper work together. I had to amend 2012, 2013 & 2014. We did get the 2012 timely filed. 2012 resulted in a refund amount that was large enough to pay the tax due for 2013 & 2014. I gave my client a time plan to follow as to when and how to mail each amendment. They have listened completely and just called to tell me they received the 2013 refund plus interest. I am excited that all was done perfectly and the IRS has been very quick at processing the refund. In the end the client will be approximately 800.00 to the good they won't have to repay. This has restored some of my faith in the IRS.

Hey Rita, I feel your pain with the prometric environment. One of the necessities is a jacket cause without one you will definitely chance getting frost bite. I have been in the Greensboro, NC center for testing other vocations. Hate that place. Hope you did well though.

All this hoopla which is another reason why I switched to Drake. Straight forward and no deception and no false promises. ATX has really plummeted in the last ten years.

Thanks Rich and I am going to implement the extension plans that everyone has mentioned. When I send out my client letters, the policy I put in place will be outlined. The client mentioned in this thread was a new client recommended to come to me by a very good loyal client so I was hesitant in my decisions. I have other clients that I have had for a number of years that I know the extension is an option they would not protest. BTW- You are correct, that I have a full time and the tax thing is/was supposed to be part-time. Not so much part-time now. I do a lot of accounting services as well so I am not working year round but still on reduced hours during the off-season.

I am not a computer specialist by no means. I agree that no matter what you do you are never 100% safe. One sure fire way is the shut the computers/servers down every day when closing the office. For most of us, that is not feasible.

Thanks and the wrong phone number is a possibility. However, I have had the same phone number for 18 years and counting. I normally deal with higher end clients who pay their taxes regardless of the amount due. None of them ever have any problems reaching me when needed. I must say, all of them respect my business hours and never call me on weekends or show up unannounced. Here is what I know, that for every client I loose, three new clients normally take their place. We added 18 new clients to our client base this last year so for a one man show dealing with the level I deal with, 140 clients is enough. Well, now it is 139. Just saying. Cutting my losses and moving forward.

Well here is the final outcome. I notified this client that I would be sending them a letter that would outline the position that I am taking with this and when I would forward the payment as well as them signing a form to acknowledge acceptance. The client e-mails me and tells me to forget it and now they don't want me to do anything and once again accuses me of not answering my phone and trying to make a big deal out of this issue and outlines the horrible service they got from me. My response: I apologized for their misunderstanding and that I have not refused to live up to my intentions and would update my records to reflect their position. Here is what I am doing. I am working in my office in another client's books with the phone right beside me as usual. Although it very nice, the phone has not rung so far today. I have printed the e-mail and put it in the client's file. I am still tempted to write the check to the IRS anyway so that I have a clear conscience of correcting my mistake.

Ms TabbyKats, Thanks for your reply as you are correct and what I should have done has been clearly identified. I can guarantee this will not happen in the future. This whole thing started with me trying to help a client who told me they didn't have the money to pay my fees. This is one of those instances where my heart got in the way and it cost me. Yes, I did get paid on April 20. Yes, I should have filed the extension and added those fees to the total but I didn't and now I have what I have. To add further, it took a week for the client to return to my office and sign the 8879 forms which we all know I could not transmit the returns until the forms are signed. This is where things went South because I once again offered to help if the penalty was assessed but had no idea it would take so long for the client to sign the forms. Nevertheless, late filing is still my fault. The Sunday issue just occurred two days ago. The client accuses me of not answering my phone which is why they showed up in my back yard unannounced and uninvited. My business phone is an Android mobile phone and I have not received any phone calls from this client since April. This client has become a PITA. I have office hours just like everyone else regardless of where my office is located. It is really not my concern how the IRS applies the payment. There will be no misunderstanding between the client and my office as to what the payment was for and this will be well documented.

John I agree and this indeed was my first thought to pay the penalty and cut my losses. However, I have my reasons for wanting to pay the amount directly to the IRS. Otherwise they will never get which is not my problem. There is something to be said for principal though. Either way, when I pay, I will have corrected my error and will not loose any sleep over this one.

I do agree with both of you. Jack you are correct with what I should have tried to do. I couldn't get a signature and therefore refused to file the returns. I should have filed the extension anyway. This is a learning curve that I didn't need to learn. I will pay the penalty as you outlined which was my initial response. I plan on sending her a certified letter of my intensions that will outline what I will pay and how it will be paid. Her failure to pay penalties plus interest will escalate and that is her problem not mine. The letter will indicate my desire to terminate our business relationship.

Have a client who showed up on April 18th with two years of tax returns due. The client did not want to file and extension, so I prepared the returns and during the review process after the client left the office, I realized that the client was able to deduct sales tax expense on Sch A for both returns. I admit, this was overlooked when the return was prepared. After I discovered the omission, I did not transmit either return and contacted the client and it took a week or so before the client returned my phone calls. This client had a balance due of $4500.00 for 2015 and roughly the same for 2014. I informed the client that more than likely a failure to file penalty would be assessed on the 2015 return and the 2014 return. Due to my lateness I would consider paying the penalty for 2015 if the IRS assessed it. Well you guessed it, the IRS did indeed assess the penalty. The penalty is $194.00. Here is what burns me. First, my office is in my home. 2. This client shows up on Sunday, accuses me of not answering my phone which according to my phone caller ID, she never called. Sundays and especially after season are my personal time and not anything close to business hours. I was working in the back lawn when she showed up. The nerve of some people. When I read the IRS notice, I asked her when she planned on paying the balance due and she said she had no intentions of paying the tax due anytime soon. Apparently all she wants is the 194.00 paid to her. I told her I would check my notes and let her know my decision. If I do decide to pay the penalty, can I not just make the check payable to the IRS and mail it to them referencing her account? Having to pay the penalty is not something that bother's me if it is indeed my error. I really feel like paying it and telling this client that I will no longer be providing services to them. Suggestions anyone?

I agree with the additional needed regulation and scrutiny. However, the big tax mills will see this as another opportunity to loan money to folks at a ridiculous interest rate which due to the longer IRS processing, will increase the fees for those loans. For them it is win win but total loss for the taxpayer who seeks their services.

I used malwarebytes, CC, and run either or MS Security essentials. I had to replace my router this year and during the process, we encrypted the guest access as well. It was suggested to me to do this as a hacker could gain access through an unprotected access regardless of other encryptions on the main access. We will change this password every year or every 6 months. It is a pain to change passcodes on your router but it is an extra layer of added protection. Well, at least in theory.

I too want detailed lists. It is important to be able to know what the total amount is made up of. Same on schedule A. I have had to defend a total amount entered on the mortgage interest line. When the IRS questioned the total, which at the time was weird they did so, it was relatively easy to show the breakdown and retrieve the necessary documents from the client. Had I not listed the detail, then we all know where that could have gone. Most of the software I have used allows you to enter details. Nothing worse, in my opinion, then a client who comes to you with a return that is messed up and no detail.

I have dealt with two of these letters and as Max W stated they are legitimate. In my case, I filed both returns and both were accepted. These forms are generated due to the taxpayer claiming the PTC and not reconciling using form 8962. Both returns, in my case, were a result of the insurance agent applying for the insurance for the clients using the market place and not telling them or giving them the pertinent information, Neither client had any idea of what their password, username or account numbers were. It was pure hell getting to talk to someone at the marketplace that was helpful or didn't appear to be agitated by our inquiries. Each client was present to during the calls. Bottom line, both owed an additional amount back simply because the insurance agent miscalculated their incomes and did not inform them that if they had a life changing event, they were to go online or contact the market place to make the adjustments. One client lost their job and has not income but is required to pay back 275.00. This could have been avoided by updating their account. As for your situation, I am glad you found the return rejected and I know jumping through the hoops for the identity theft is miserable. Just make sure you get the identity theft pin number from the IRS. Prayers for you and your parents. I too have an elderly mother and these times are tough to deal with.

Just to add, I really like this printer so far. It is the fastest one that I have had. I do like the duplexing and it will save on paper. Currently I go through a case and a half during tax season. I will probably end up buying the add on paper drawer. I too have always had the best luck with HP printers. I had a brother MFC that was color. That was a huge mistake, op belts, toner, priced off the charts. A new printer would have been cheaper at the time. I wore it out in 3 years. Back to HP's and no real problems. The HP 2015 I retired lasted 10+ years. A friend of mine works on printers so I am giving it to him to go over and see what it needs. My wife can use it for her stuff if it is still okay.