RitaB

That is exactly what I was wondering, too. The S-Corp has hired a professional that appears to be more successful than me at billing at least, and I hope he has asked this question, too. I'm printing the article at the link I posted and giving it to client.

One more thing. (I feel like Columbo.) The tax savings with Sch C deductions vs Sch A is less than $500, so I am not inclined to fret over it too much. None, actually. He's not overstating deductions, pays a truck load of taxes, gives a lot to charity. Misses Education Credits and Tuition and Fees deduction. But I am curious as to whether it's correct.

One more thing, it's not an accidental "X" in the box for statutory. He came to me in July to get estimated payment vouchers and told me he'd be a statutory employee. He did not tell me it would be for an S-Corp where he owned 34% of the shares.

I have zero experience with statutory employees, I've read the thing at irs.gov, and know I've got to pin my guy down on exactly what he does, but this does not smell right to me here at the outset. Anybody seen an S-Corp Owner that's really a statutory employee? I know the benefit to him with the deductions on Sch C. https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Statutory-Employees

Well. Tom. I'm glad you asked. Of course I said yes.

Yes, I believe you'll have to paper file. Yes, what a pain.

This is hysterical considering my third child was doing laundry and I had 32 pair of unmentionables in there. He said, "Mom, you're wearing underwear, right?" Major accomplishment today was I managed to be sweet to a lady with a $60,000 gain on the sale of a lot that was shocked she had to pay back PTC. She had no tax liability. I had some thought bubbles hanging in the air, but I was sweet and sympathetic (ok, no, I was lying) and she was laughing by the time she left.

I have a commercial office in town. I don't think I could handle working from home. I salute you all. I'm glad when I go home I can shoot anybody who comes down the driveway. Just kidding. Ok, maybe not.

Nope. I don't want it. I had it. I'd rather be surprised. And if I don't answer, half my clients would drop in to ask whatever question it was. I'm not even kidding. I think everybody in this county drives by every day.

If I knew who was calling, I'd answer about three calls a week. But I have push buttons this year and really like them. OK, this latest message I won't ignore, but really?? "Rita, this is (Name). (Cause it's not possible that I have more than one Carol.) Would you have them put my refund in Pen Air Credit Union in Florida? Thanks." Thought bubble: Yeah, I can probably get it to that bank, would you also like for it to go into your account at the bank or are working on donations for 2016?

I can't have caller ID.

Guy owes and waits three weeks to return Form 8879. While he is standing over my shoulder watching me enter his bank numbers (I actually insisted, if you knew these people, you would, too) because he has changed his mind about mailing a check, the phone rings. Of course, I let it go to voice mail. IT WAS HIS WIFE WANTING TO KNOW IF SHE COULD TELL FAFSA THEY HAVE FILED OR IF SHE SHOULD WAIT A COUPLE DAYS. Thought bubble: Yes, when I hit "send" every agency in the universe has your very special and mysterious tax return in their system.

And now my thought bubble will have "you windjammer" at the end.

My opinion is you are spot on and I'd suggest to the client to amend returns back to 2010. Of course, the client is gonna want to know what difference it will make. That's when I'd say, "I can't tell you that without doing the returns, so it's entirely up to you. I will tell you that the returns filed 2010 - 2014 are incorrect and I would amend them if they were mine." I would not discuss whether or not IRS will issue refunds back that far. The returns were incorrect and should be corrected, and that's all I'd say. Yes, the responsibility for the accuracy of the returns rests with the taxpayer. I'd tell him that, too. 90% of my clients don't have a clue if their return is correct. The odds of a taxpayer with an installment sale understanding a tax return approaches zero, in my opinion.

Well, I certainly do. The one that comes to mind is the jackass that always says, "I don't know why I don't do this myself. I could do it in 15 minutes." He hands over his stuff and proceeds to chat for 30 minutes about all the candidates for POTUS, how everybody should tithe (but he doesn't - hello) and how ObamaCare screwed him over last year. The thought bubble that I hope was not visible over my head: Oh, yeah, because you applied for the subsidy all by yourself because you are so smart and then had to pay it back. Oops. Tell me again how you should do this tax return yourself.

I think the company will eventually have to write her a check for the imputed interest if you want books to eventually be right. Or just carry the payable forever. Buy you already know the books will never be right with a person that operates like this. Good luck to you. I really, really hate this type client. Wants liability protection for having a separate entity then mixes everything up. I'd ask her what's stopping her from moving the personal mortgage loan funds to her personal account. Surely her old bank can manage a check.

I just want to report that I can never get the right answer with the ATX 1098-T input. For example, pretend the kid had 3,000 in tuition, 3,500 in scholarships, and 800 in books. All conditions are met to qualify for AOC. The credit should be $300. I have to fudge it every time to get the $300. Is it just me?

Little lady left a message earlier, "Rita, this is Mrs. Former DIYer, just want to make an appointment to come in and see you. My number is ... wait, I know this, I've lived here 20 years. Frank, what is our number?" (Laughter) Frank: "Honey, when are you gonna learn our number?" Tells her the number. Lady: "Oh, that's right, it's blah, blah, blah." I was crying by the time the message finished. This is the same lady who told me last year that she did her own return 2013, that it was very easy, and that she still screwed it up ROYALLY. I guess we all have those days.

I don't know what that is, but I'm pretty thirsty from the pizza, so I'll have what you're having.

Big Mac? Fries? Butterfinger Blizzard?

I don't know why there are days like that, but you all have them, too. All. Day. Long. This last one picking up was the first snap of the last straw. I did a lot of sweating last year projecting what a couple should have withheld for 2015. APPARENTLY, they were just kidding and really wanted to know what they should have withheld for shopping spree purposes. Refund was $527. Client: So, did we just not have enough withheld? Me: You got a refund. Client: Well, we usually get more. Me: You got a refund. Client: Ok, good job, thanks, see ya next time. Thanks. Again. Thanks. Coffee, anyone? Ice cream? Chocolate?

Boy, ain't THAT the truth? Did you know that when you go thru that list, and you don't have a clue, and you wind up with Single and Six Exemptions, it really throws you off at tax time if you only have one kid and nary a deduction? My client did not know that. Well, she does now.

Good for you, Terry! It shows a lot of maturity on your part that you realize that people sometimes freak out a little when they see an amount due on a tax return and they were not expecting it. If you want to keep the client, continue with business as usual. If you want to lose him in 2017 you can do what Jack said.

Hahaha, yes, I see now that the world may never know, but I'm still going with "ask your $%^&*# question first thing, and let's skip the prelude".

That was my guess, too. And don't you just want to say, "Ask your question. You don't have to tell me that you have a question. I know that part. Let's advance the topic."