MsTabbyKats

I am still waiting to hear back from this client...complete with a PDF attachment of her Turbo Taxed return. DH just had a good laugh...when I told him her income (just short of $300K)....and that she wanted me to explain why she owed $7 to Illinois!

This is what is going to probably happen. We closed the old S -corp 12/31/2013....and opened the new one 12/13. We want the buyer to open his own, and we'll close ours. There is no inventory...or equipment as far as things we bought. So, if the buyer gives us a check for $XXX...we put it in our personal account, and it becomes Line 21 income? I just want to keep this as simple and legit as possible. Thanks for the responses. For personal reasons I don't want to start asking my CPA...because we've had offers in the past..and when I asked her she just keeps sending me links and reminds me that she isn't a lawyer.

Yep...I made one last season because the client had to sit with me, although I told her she couldn't. She talks and talks. (She sounds exactly like Dr Ruth..high pitched voice with German accent). Last year I literally told her to shut up. This year, when she told me the mistake (and it was a big one...I had left off $180,000 in long term loss carryover)..I told her it was her fault because she talks so much I can't focus! She still insisted she had to sit here while I did the return.

So...if I put it in my personal account and report as capital sale of an investment property , it would be taxed as ordinary income?

And I din't want to ask my CPA because she wii inundate me with links and I 'me not even sure what's happening....and then she will tell me she cannot give me legal advice....blah blah So, I ask here.... My husband and I own an S-Corp....and we got an offer from a buyer. If they pay us $XXX....and we put it into the company bank account....when we withdraw it, is it considered wages...subject to FICA...or ordinary income?

NY can get very complex with non-residents and part year residents. However, I find the reps very helpful whenever I have a "situation". (As I did today with a new client whose W-2 was coded as a non resident, when she was actually a part year resident...) You should give them a call...I got right thru!

I really don't mind questions .....but it's things like explaining formulas that gets to me. Seven states....and I have to explain why some have a small balance due! Although the combined states was an $18 refund...despite her $9000 interest. I'm going to advise her to get tax free NYS munis...and move the foreign bank accounts here for that purpose too. "Because"

I just give my clients the link and tell them it has to be filed directly by them this year.

Yes...they are teachable ....but can you explain, in depth why her AMT is higher this year than last year. She wants calculations...not just the standard "because blah blah..... " I'd rather not change the job withholding....it's calculated to be exact...including the 7 states..which is why she had so many questions.

The "average Joe"....takes for granted everything you do is OK... Or ....the very bright and successful client who wants explanations. This is why I don't take on "high income" folks...but this one has been with me for about a decade Yale grad...Fed return plus 7 states...owes Above her wages... $9000 in investment income....including foreign interest Wants explanation of 5 things, including why her foreign tax credit is less than the tax she paid, why she owes a few dollars to some of the states and of course the AMT. It was easy....33 per cent bracket means $3000 of fed tax and almost $1000 to NYS for your $9000 investment income. I told her she would have to take these things up with congress...and then I suggested estimated payments.

It depends how messy the amended return would be and how much the client already paid you. If it's not a big deal...it's good public relations to do it gratis. After all...it's not like she forgot to give you something.

Interesting.....however my program won't let you e-file unless the spouse's SS number is there. But, on a paper return it doesn't show up....just the name is there.

The client should be able to find out that information. But, if he didn't pay the prior accountant, why do you think he'll pay you? (Unless there was a bona fide reason...that is) I wouldn't give out that information either...if I were owed $$$.

Paying a penalty is a lot better than having a job that makes you sick...IMHO.

I'd keep it MFS. I have some of these....and I don't want to hear about the diplomat's income.....ever!

I think you're missing the point of this thread..... OP says the name and number are are the same on both returns...but one keeps getting rejected.

It's that time of the year....oh, so very different than "the January crowd". I'll never forget my first year...when I worked for someone. Interest rates had risen, and an older woman just couldn't understand why her estimates didn't cover her taxes. She kept saying I was wrong....because she had paid what she was told. I told my boss to explain it........

JB- I hope you didn't take offense about not getting involved....none was meant. But, this is a perfect example of why it's best to avoid doing friends's tax returns. There are times we are better off not knowing their personal details.

JB...I'm not saying this as anything against you....but you really have to stay out of people's personal issues/marriages. If this were my client I would tell her the facts...and that she might be better served by someone else. And then she and that preparer can figure out what's best for her. I do this a lot with my non-resident aliens who have treaty issues. I don't want to be responsible for the tax return I prepare generating problems in the future.....personal/professional/financial.

True...didn't Al Capone get caught for tax evasion?

Did she give you his name and SS number?

Just a little rant.. How they love us when the refunds are large. Then the child tax credits go...but get replaced by educational credits. And then those go...but, there's still the exemptions.... And then one kid turns 25...lives at home...but has an income just above the filing threshold....so guess what? For tax purposes...he's a grown-up. (And yes...he has to pay a grown-up fee because he has 4 W-2s.) And you gotta tell the parents if the 21 year old gets a job after he graduates...the small refund that's left is gonna turn into a balance due. I'm not expecting them back. Mom actually gave me a check for less than the balance due...although I has told her the balance an hour earlier. DH collected the check. Rant over!

Very true...if husband has no income...there's nothing to add to hers.

Once again there seems to be a lack of common sense with whomever makes these rules. OTOH....he probably made more than $7400 by doing whatever it is that he does.

I don't know the legality about filing extensions....but if the client doesn't request one...I certainly wouldn't send one. Suppose the client passed away, is somewhere and doesn't want to be found, or is not planning on filing for whatever reason. I wouldn't send anything without permission. One phone call...one e-mail......no response.......and assume they've moved on.