Jack from Ohio

With all the political unrest and turbulence, I have refrained from trying to do any tax planning for my clients for 2017. I have informed them all that I know 2 things for certain about taxes for 2017. 1. There will be tax law changes. 2. I have no idea or clue what will be changed or when it will be changed. I then recommend that they write their congressman about taxes.

Client has a 1099-Cs for a total of $417,000 of Student Loan debt cancellation. It was cancelled due to her being declared 100% disabled. 2016 AGI $32,800 consisting of IRA withdrawal and $3,700 taxable SS income. Question is: Does Student Loan forgivness qualify for exemption on Form 982 due to insolvency? We have differing views on this here in the office. My research has found that there are NO exceptions for claiming Student Loan debt forgiveness as income.

This is the reason I do not give information or tax returns to the client until I get my pay. I made this policy across the board to all my clients. It is included in my annual letter. You now know what kind of person they are and a different definition of "friend." It is worth the $1,000 for the information you just learned.

It is too late to get a refund from 2013. I agree with rfassett.

The REAL question here is: Does NY require the DL information for extensions to be e-filed?

Bill the taxpayer, unless they are a minor. Easy rule. If Mom & Dad pay, I don't care.

I am going to find some chemical geniuses to help me create a liquid... This liquid would be absorbed instantly into any papers we give to our clients. It would also instantly infuse through their skin when they touch the paper. The liquid would have a psychosomatic drug mixture that would go immediately to their brain. There it would implant, in the correct neurons, the instinct to follow ALL instructions given to them by their tax accountant. It would also replace the neurons that contain common sense, logic and manners. I am currently looking for investors....

I am taking out my frustrations by listing my clients in the order of PITA they are. Largest on top. When I feel a fit of rage coming on, I call up the top of the list and fire them! No explanations, simply that I will not be able to help them with their taxes for 2017. Seems to have a calming effect.

I call it "Stickempuckey"

Just write it at the top of the 1040. Then sleep well.

E-file the extension as well. If you need proof of filing the extension, the only thing the IRS will accept is the electronic confirmation.

How do you do a brand new client, whose information will contain much more than he says on the phone in 5 minutes? If you can do that, I want to hire you...

You are much more willing to gamble than I am. IF there is a letter and a ruling against your client, YOU could be on the hook for filing an inaccurate return because you KNEW what was correct and did not do it. Go for it, if you like your chances.

The IRS has stated that "Silent" returns concerning line 61 "May get a notice if the Service deems it correct to do so." Tax law concerning the SRP penalty has NOT been changed. Just because the software and e-file system allows it does NOT mean that it is filed correctly. Until the law is changed by the Congress, or the IRS issues clarification, the law is still as it was last year. If you want to risk your clients getting letters, and possibly you getting dinged because you knew the law but did not follow it, go ahead and file "Silent" returns. I choose to follow the law as written.

The name and SS# must match exactly what is on the SS card. If she has an updated card, the IRS has been informed.

Gather your documentation for response to the letter. I would NOT have calculated any exclusion based on the information as provided in this post. Good Luck.

"Write out an itemized list of all the over the counter items you use. Include it with your other information. I will account for it properly on your tax return." Put it on Schedule A. Print and charge for it. Income opportunity...

THAT"S COOOOOOLLL!!!

So you think B should ignore the tax court ruling and just throw information at the IRS? This will guarantee further correspondence and headache. I would NOT give that advice, nor ask the client to sign such a return.

File an extension. Demand that she get the daily record from the casino so you can properly prepare the return or file with no losses.. If she refuses, hand her back all her source documents and a business card for the closest H&R. Then wish her luck and sleep well.

Correct. The Dad was responsible, so no gift.

Three years now. Results of a tax court decision. You should look it up.

She can only use the losses incurred on the same day of the winnings reported on the W-2G. Losses go on Schedule A, not subject to 2% and not greater than the winnings. If there is not enough to itemize, then the deduction for losses is lost. (pun NOT intended) Daily losses only. Not weekly, monthly, or annual. Most likely, the CP2000 is correct.

The IRS rarely checks these things, but I would be interested if this concept has been cleared through an audit? I would NOT take the position.

Gift $$$ = Down payment money and any money paid on loans that are the responsibility of the son. WAY OVERTHINKING THIS ONE.