RitaB

Now would be a good time to find out if the "W-2 employee of the tax firm" is an attorney. I didn't understand that to be the "case". Regardless of job title, I am wondering if this compensation might be a first time occurrence rather than a one time occurrence. And, a service was provided to the issuer of the 1099-Misc, so...

I agree with my esteemed peers since OP said it's a one time occurrence. I would add that if the 1009-Misc shows the compensation in box 7, IRS might expect to see a Sch C. You can keep them happy by entering the amount as income on Sch C, then zero it out by entering the expense on p. 2 of Sch C with an explanation: "Income not subject to self-employment tax and properly entered on Form 1040, line 21" or something real smart like that.

Crying. (/s)

David, this is from http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-on-Designated-Roth-Accounts#rollovers. (A Roth 401(k) is a designated Roth account.) Can I roll over distributions from a designated Roth account to another employer's designated Roth account or into a Roth IRA? Yes. However, because a distribution from a designated Roth account consists of both pre-tax money (earnings on the Roth contributions) and basis (Roth contributions), it must be rolled over into a designated Roth account in another plan through a direct rollover. If the distribution is made directly to you and then rolled over within 60 days, the basis portion cannot be rolled over to another designated Roth account, but can be rolled over into a Roth IRA. If only a portion of the distribution is rolled over, the rolled over portion is treated as consisting first of the amount of the distribution that is includible in gross income. Alternatively, you may roll over the taxable portion of the distribution to another plan’s designated Roth account within 60 days of receipt. However, your period of participation under the distributing plan is not carried over to the recipient plan for purposes of measuring the 5-taxable-year period under the recipient plan.

Actually, he is. I'm not saying I'm a better tax professional than he is, but I'm a better tax professional than he is.

I appreciate the comments, Ladies. Yes, an accountable plan does not convert a personal expense to a business expense. Church is not going to reimburse him for commuting miles, but If he were to be paid for driving to work, and as long as his combined SE + FIT rate is below 100%, it'd be a good deal. There wouldn't be any credits lost because of increased income for him.

Church A has started Mission Church B. Same town. My client is a member of Church A and is going to serve as pastor to Church B. Church A will be his employer. He does no work at Church A. He asked me if his miles from home to Church B and back were commuting miles. I said, "Yes." He agreed with me. (What???) Then he said that an accountant who's also a member of Church A said his miles from home to Church B and back would be business miles since he is an employee of Church A. I think not, but this accountant has letters after his name and was in business when I was a wee child. What do you fine folks say? And please limit answers to the question asked, not the other 36 possibilities. Been a long day.

I love all you people like a nerd loves math class.

It was tongue in cheek, and spot on. I got a new client yesterday that told me the lady giving her record keeping advice (not an accountant) told her not to record the cash. I told her what I thought about that. It aggravates the living daylights out of me, and it is cheating. My guess is it happens all the time. And people get away with it. I think a great number of them also receive entitlements. Wow, now I just want to go home and eat donuts.

Thats grate. No 2 ways about it. Literally rolling in the floor. LOLing.

You're welcome, yesterday was Wednesday, and there was not a full moon. Plus, the gods wanted me to get one right.

Forms, Add Forms, Elections/Statements. Then at the bottom click the "1040" tab.

Jack and John make good points. But you know me. I going to suggest something else. If he can get you records that meet your standard for preparing a timely filed return, and you can get paid to do the returns, I say go for it. I would not worry about how to help him avoid his debt. Or if you feel like helping him out of the crack he got his own tail into, help him do that later. After all, HE'S late at everything, right? I know that's not very sophisticated advice, but I have never understood why we treat a late return differently than any other. I would avoid a lot of hand holding, unless you normally do that for everybody. If he owes $170,000 in taxes, he made a lot more money than I do, and while I was making estimated tax payments, well, you know... And, the part about a family member getting a letter? You might check on the existence of a spouse, cause that's all I can come up with on that one.

George, do you maybe have a box checked incorrectly or an incorrect amount on one of the EIC tabs (say for Earned Income or Part II of Worksheet B ) ?

Regarding the 8879, I am always amused that the clients are so particular in signing EXACTLY how "they" (I) have it on the form. I always want to say, "Just sign already; you didn't give two 's about anything else on the return. Now is not the time to get concerned with accuracy."

I have heard more than one say the equivalent, Carol, and I'm seriously thinking I'll do the same. It's a shame how dinky the letters are. Or, in the alternative, how much trouble it is to change the letter. I mean, really, it's like landing a plane to me. Yes, very unprofessional looking. And about random thoughts - that's what we are all doing, keep it up!

I didn't lose anybody over the 2012 mess. But I sure did lose a lot of time and energy for a few weeks there, both of which translate into dollars, because I was working under increased pressure for a reduced wage. Did anybody die? No, but, I didn't really have time to hunt them down. Yes, if they weren't willing to cut the price with the 2013 software, it's never going to happen. I will say this, I found the 2013 program to be just grand, except I hate the letters. It was plenty fast, and I had no desire to kill anyone. None at all. I'll renew, but I think I'll wait.

I heard it could happen if you get the account manager who lives here:

I always say there is a real need for a sarcasm font.

Well, I waited to renew last year. I guess they extended an olive branch of sorts with special terms on paying. My kind of olive branch is a huge discount. Just saying.

I knew what you meant. Hey, did you renew by credit card, and if so, when do they bill the card? I would renew now if I weren't billed now. I looked over the letter this morning, and I didn't see it addressed. Last time my credit card was billed $173 in Oct 2013 and the remainder in Feb 2014.

I just got a new client who brought in his 2012 self-prepared return. You know, to show me he did it all by himself. He had a penalty on there for excess ROTH contributions. He's never even contributed to a ROTH. Ever. In the history of the world. I asked him how he thought he did on his return. "Not too good now that you mention it," he said. We had a good laugh, and I can't wait to see where that number was supposed to go when he brings in the forms.

Heard at my house on Mother's Day 2014: "Welcome to the 21st century, Mom." My kids gave me an iPhone. I took it in to Verizon yesterday and the kid in there heckled my flip phone. I happen to love my flip phone. It has been a rough 20 hours. RIP, Flip Phone. Rest. In. Peace.

(My favorite icon.)