kathyc2

I decided to keep it very simple. This is what I came up with: "This tax season was rather hectic for me, especially toward the end. After reflecting, I realize that I need to reduce some of the workload to maintain my sanity. While I have enjoyed helping with your tax prep needs over the years, I think it’s best that you make other arrangements for next year. I wanted to let you know now so you have ample time to find another preparer." Thoughts?

My money is on the chainsaw gang who have shown time after time that attention to detail is not their forte.

My clients all know that I've been scaling back. No longer doing accounting work or corp returns. They also know that in the next several years I may be totally retired. Letter letting them go will in some way reference scaling back. The rating system is a reminder to me how to answer when they ask how much longer I'll be in business. One's will be told as long as I'm still mentally sharp. Others may get an answer of "a couple years" or "five or so years" depending on the degree I want to keep them. All have been told that unless it's because of immediate health reasons, I'll give them at least a years notice. I don't have an issue if they are long term clients. Most have been PITA entire time. Back when I actually needed the money I'd be much more tolerant then now when the income is nice but not needed. I make a note on Excel sheet whenever I add a new client as to how they came to me. Most clients have at least one or several others clients that are their family, friend or co-worker. I do think harder on those if I want to release or keep.

I went through my client list and gave everyone a 1 to 5 rating. 1's being clients that are a joy to work with, 2 and 3 room for improvement, 4's skating on thin ice but being given one more chance and 5's will be receiving an email to make other arrangements next year. 1's were over 50%, and 4-5 less than 10% but a source of excess frustration.

With all the poking and prodding going on in IRS systems, I'm afraid we may have another crash like 2018. Or even worse, they don't pick up the software generated withdrawal authorizations. I was planning on having everything submitted today but some clients can't seem to get their (*&^ together and get signed forms back.

Mine is clients that make multiple times my income but complain they can't make ends meet. When I ask if they make a budget for expenses they look at me like I'm a space alien. Of course they never have the money to make estimates or adjust W2 withholding like I suggest. Yet they think they have the money to buy an expensive new car, live in a McMansion and take extravagant trips. Two of them just this week that look large 401K distributions in 2024 with no state tax withheld and only enough FIT to cover 10% penalty. Another one with a rather large inheritance held in a trust as apparently parent realized they can't handle money. Supposedly, EJ told him he doesn't pay tax on inheritance. He can't understand me telling him he's not paying tax on the inheritance but on what it earns as shown on K1. Since they know they owe I never see them until April when my tolerance level is below zero.

Yes, it appears balance due will work. Duh!

I have a situation that will have a large balance due. Actual return won't be filed until fall due to a K1 that never comes before Sept. I haven't talked with client yet, but guess they won't have all cash available by 4/15. If they pay a chunk now, how to they pay more in a couple months to reduce additional penalties? It appears direct pay for 2024 goes away after 4/15. https://www.irs.gov/payments/types-of-payments-available-to-individuals-through-direct-pay

New client has 2 disabled adult children, which in prior years never claimed dependent care credit. She is a teacher, so only available when school is in session IMO. They stay days at an organization for disabled. Medicaid, etc pay most of costs but she also pays some. Would it make a difference if she is required by facility to pay some, or just takes it upon herself to do so? I'm thinking along the lines of if they don't require it, the payments may be looked at as charitable donation rather than dependent care? Both receive a few thousand in SSI, but that shouldn't make a difference, should it?

LOL! I thought this post was going to be in regards to the current state of stock market.

See chart in W2 instructions when retirement box should be checked or not. Page 31 https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

I e-filed a 2023 amended on 2/7 that still shows as processing. State processed and sent refund on 3/5.

Not anymore..... https://blog.ssa.gov/social-security-to-reinstate-overpayment-recovery-rate/

Well then..... https://www.cnn.com/2025/03/31/politics/irs-it-officials-immigration-enforcement-data-sharing/index.html

Looking into it a bit more, it does appear that both need to file 8962 if MFS even though only one had coverage. Both would be subject to repayment on their returns. I can't see how it could be allocated as only one had insurance. If you have a situation with ACA where it's better to file MFS, I'd be interested in seeing numbers.

Whelp, I stand corrected. Repayment Limitation does come into play if under 400%.

That is not available for MFS.

She will have to pay full price and return all APTC.

No, but the only way wife can claim PTC is if there is spousal abandonment or domestic abuse.

Software is not recognizing that account has been open for 5 years. Likely a check box somewhere.

If you have EIN and it's a larger company it will show up on google search what company is attached to that EIN.

Three different employers did not submit W-2's? If it was just one it could be employer was not paying withheld taxes and committing fraud. But three? Something sounds fishy. You've probably already done so, but make sure there wasn't a transposition error W2's received and tax return. Been a couple years since I got out of payroll biz, but it used to be paper W'2s were sent to SSA. Do these show up on annual wages on SSA site? The employer should be checking that all W-2's they submitted were processed correctly. Since we're talking about refundable credits, doubtful IRS will be able to do anything on the individual return.

I'm guessing that may have to do with how you look at who is at fault. Example: In March 2021 I had a new client that I amended all three years prior both federal and state to correct an error that lowered AGI. State processed amended returns within a couple months and issued refunds. Being Covid year IRS did not process amended until late fall. In Dec 2021 client receives notice of balance due from state, which reversed the state amended return. After calling the state, I learned that they link with IRS computer to verify AGI numbers match three years in. This is to catch if federal upward adjusted and state amended was not filed. To fix client needed to get transcript showing amended amount and then send that to state. I could have blamed IRS for not timely processing amended rather than realizing Covid wrecked havoc at IRS. I could have blamed state for not just accepting the amended return they had already received. Guess what? I realized it was just bad luck with timing and no one was to blame.

https://www.revenue.alabama.gov/faqs/if-i-am-not-a-resident-of-alabama-but-earned-income-from-alabama-sources-am-i-required-to-file-an-alabama-tax-return-2/#:~:text=According to Reg.,%2C Form 40NR%2C each year.

As long as they used the same account and didn't create a new one the old forms will be there. Have them look under messages in the Jan 2020 time frame.