rfassett

Yippee for you!!! But isn't that how it goes? You get rid of someone like that and just turn around to find a much nicer one standing at your door. That is how my practice has developed into over 99% of the folks I would have over for dinner. There is still a couple that need to be weaned out, but their time will come. I love your response. Keep up the good work!

You are correct Judy. I know more about this nonsense than I ever wanted to and last night while doing this return was another learning moment. I kept looking at that $4,000 and knew that could not be correct because of the cap. And I kept looking at the poverty % and knew that they should never have had the APTC (well according to the 2013 return, they did qualify). And I kept thinking, it just would not be fair for them to be able to keep the $2,500. And when I finished my research, I was amazed that there was actually some fairness built into the rules. I felt better about finishing the return.

I JUST OPENED MY WINDOW!!!!! There is still three feet of snow outside the window - but the temps are up in the mid-40s and the air is starting to smell like spring. I think I will leave the window open for an hour or two just to air the place out! Gosh - does that air feel good!

Yep - that would be may fee. And when the client showed up to get the return, I would have bandages on all my typing fingers and have very dark rings around my eyes and tell the client that the e-filed version had to have all of the detail typed in. I like to justify my fee. :)

lol - You guys are too much. I guess here is mine for the day. Dear Client: Your K-1s for the S-Corp that you emailed me about this morning will be ready when you pay the statement for the end of the year that I have sent you three times already. Dear Client: Really? You made six figure income in 2014 with just the two of you on the return and now you have to pay back the $4,000 advanced premium credit you received and you do not understand? Dear Client: No - the $40,000 you paid cash for land is still not deductible and is still not a like kind exchange. There you go - those are all already from this morning and it is just 4 hours into the week. It can only get better, right?

The guy that put in the heating system for my office building that I built 13 years ago undersized the heat pump. When that one went bad, he replaced it with the same size unit. When that one went bad I called someone else. The new guy, so he says, put the correct size in. My point, we are on our third heat pump in 13 years. I would have a pretty good argument regarding expensing the darn things. Oh year, the ones that failed made it through the warranty period and failed shorty thereafter. The current new one is bigger and stronger and has a better warranty. I think I am good now for a couple of years. Knowing what I know about heat pumps - I say expense it as a repair. You can use my case for an argument but I will have to charge you. I have to find some way to recoup the cost of three heat pumps in thirteen years.

It's just me. I find it MUCH easier to read a trial balance than a P&L and/or BS. I guess I am just old school and was brought up in this business creating the TB by hand before the IS and BS could be prepared.

I print the general ledger for the year, a trial balance for the year, a trial balance for the prior year so I can see if the client made any of those pesky prior period entries or adjustments by comparing it to the trial balance in last year's file, and if I am feeling particularly lazy at the time, I print a comparative balance sheet. All of this information will tell me if I need additional info which I can print on a selective basis. I do this for all of my QuickBooks clients, irrespective of entity form. Now - I do not print all of that to paper. The only thing I print to paper is the trial balance - the rest of it goes to the paperless file cabinet.

Yep - it depends on state law. In PA, the 1st dollar of tax requires a filing. So with our rate being a fixed 3.07%, income (wages, interests, dividends, Schedule C or E, etc) over $32 requires a filing.

If he has basis in the plan for PA purposes then it would likely not be taxable. PA does not exclude contributions to retirement plans like FED does. Anything that would have shown up in box 12 of W-2 would lead to the taxpayer having basis. So everything above is correct and as is true in most areas of taxation, the answer to your question is "it depends".

Was the 1099B issued to the estate's ein? Who got the money? Regardless of whose EIN or SSN is on the 1099B, I guess, I would simply put it on the return of the person that received the money with a note regarding nominee 1099 if need be. I would not file a 1041 for an estate that was closed in 2010.

I agree with KC. I just did one today but had all of the info so ATX was pleased with it and let me create the e-file. 2013 expenses for baby adopted in 2014 and pending final approval in 2015. On a personal note, I am an adoptive parent and that period between placement and finalization is the most stressful, mind numbing, slow moving time in a person's life. Tax season is a walk in the park compared to that. I oft said that if there would ever be a change that would require my wife and I returning the child, they (whoever they would be) would never find the three of us - and I meant that. Fortunately it did not come to that. And we lived happily ever after. Anyway - it seems paper filing may be your only option.

LOL - do you see that sled there? No, I mean the red one with the wheels and all the snow on it. We have one just like that except it is blue. I was driving it one morning a few years back and I came up over a knoll and I was following a big pick up truck and all of a sudden he veers into some ones front yard to the right. Just as he does that, my vision screen opens up and right at the bottom of this very icy hill is a school bus cross ways on the two lane road. I can't follow the truck because I will hit him. I hit the brakes and that vehicle I am driving turns into a sled. By the grace of God - and ONLY by the grace of God - somehow, that sled stayed out of the ditch on the left where I had to go to just be able to squeeze by the bus. And I am just sliding this whole time. And as I start to clear the bus, I see people standing in the road. They are probably saying "look at this stupid impatient idiot" and all I was doing was just trying to hold on. I get past those people and I am still in the opposing traffic lane and I look up and I am face to face with a car going the other way. I slid to the right and past him. Gathered myself and headed on my merry little way. Wow! What a trip! We don't drive that sled in the winter anymore.

Several year PITA client emailed me back in January to get a quote on doing his S-Corp return. (When I say PITA, I mean that. As an example, we had to buy security envelopes just for him. But that is a very small tip of the ice berg with this clown. He is a true PITA.) He claimed it had minimal activity in the corp - as if that has anything to do with the amount of work I have to do on the return. I quoted him a price via email and he responded he needed to shop it around. I said that was fine and to let me know one way or the other. I finally heard from him yesterday via email. He says" Just was curious what the charge would be to prepare my personal taxes? The only activity is a small K-1 for the corp [apparently he found someone else to do that], and sale of the FL condo (which I renovated so I want to deduct as many of those expenses as I can); no stock trading last year. I'm not sure but depending on all the renovation deductions I can use, I might slide under the ACA radar." Editorial note - the FL condo was his primary residence for under two years and was never used for any other purpose. So my proposed response is: "Generally I would charge $200 for a return like that and add a $300 PITA surcharge, but for you, your fee is a FLAT-OUT $1,000." Do you think he will get the point? How would you handle this? Really, my true sense is to just ignore him.

Really? I was leaving my garage yesterday, started down the drive, put on the brakes and just kept on going. The driveway is a third of a mile long, winding and on the side of a mountain, and yesterday it was a sheet of ice. Only the snow piled three feet high on the side of the drive slowed me down. Yes - I am ready for spring too. And it is on the way. How do I know this? One of my perpetual April clients dropped off his stuff yesterday. When he shows up, Spring is close at hand.

Thanks for the info. When I have been using rolled over returns and try to add new assets I get a message that the date does not match the current year. I assumed there was a snafu in the year rolling over in the fixed assets so I have just been saving the return, closing out of the return and re-opening the return and all the fixed assets and depreciation is fixed for the current year. Yeah - something I should not have to do - but at this time of year it is wise to pick our battles. That is not one I needed to pick. It was an easy resolution.

OK - teaching math and debating what 0x0 or 0/0 or 0+0 or 0-0 equals or means and going to Walmart and buying flowers while at the same time asking for a candy bar and making plans to frame a print? Am I the only one working on tax returns today?

I am thinking that is some of my issue also sans the unhappy callers. I worked on 6 decent size business returns in February that I did not do until April of last year. And I have seen many more that are in earlier - thus adding to the backlog. We are being as honest as we can with our folks about the turn around time and the nearly universal response has been "whenever". The only caller that I am aware is the one that tried to do her own on TT and screwed it up requiring it now to be amended. And I am suppose to drop everything I am doing and work on that? I don't think so!

My billings were down for February but that does not mean I have fewer returns or that I have reduced my fees. It simply means that I purposed to work 75 to 80 per week this year instead of my 100 to 105 in years past. The back log just keeps growing. I have about 120 done and approaching 150 in house to do with continued drop offs coming in at a pace of 10 to 12 per day between now and the 20th of the month and another 50 that will come in after that. We are right now committing to a 3 week turnaround. By the 15th we will be committing to a tax season completion. After the 15th - no commitment. On April 15th, I will be committed. They're coming to take us away, ha ha, ho, ho, hee, hee...............................

I do not use the scheme as a marketing tool but I will review prior year returns for every new client - not so much to look for more money back as to review for correctness. Some like what I find and some do not. But it is always understood that if they are going to continue to be my client, they will go with my suggestion of a fix whichever way that may go. I do not always recommend amending either. It has to be significant enough to make it worthwhile - even if it is a refund.

Well - I am not so sure. Twice so far this year I have received printed information (name, address, SSN, and an amount as well as the payer information) ON A BLANK HALF SHEET OF PAPER with a label attached that says "Form 1099". But for the fact that the client has had royalties in the past from that company, I would not know that the number on the paper represented royalties. I know that is an anomaly, but still - things are not as consistent as we would like to believe.

Think ordinary and necessary. As you say, your law enforcement folks get to take a deduction because it is an ordinary and necessary business expense. Can your present guy say the same thing? If not - then no. I have one that lists his guns and ammo in his organizer under charitable contributions because he teaches proper gun handling techniques to his Sunday School class. I just chuckle and move on.

WITTB meaning what it takes to balance? Nope - all of mine balance. It takes some client training -but it can be done.

To the original post - what is the down side here? If your client would win the audit lottery, he would be audited, perhaps, in the worst case scenario, have to pay some FICA, Medicare and penalties and interest. The auditors with whom I have dealt would immediately abate the penalties if I could show that the client came clean the following year. (In fact, I have an audit going on right now where the guy has been using "employees" and issuing no payroll reports and no 1099s - we are talking 5 full time "employees".. The auditor said, come clean now and we will abate any penalty associated with this. (I was shocked.) The biggest reason I believe the auditor went there - we disclosed the situation before he found it out on his own.) But in your case, assuming the worst case scenario, your guy writes a check and the case is closed. Why is he so concerned that this will affect his state contracts? This is not an issue that will be published in the newspapers and trade journals. It is simply a taxpayer not paying attention and then coming clean when he realized there was something wrong. I would be inclined to leave sleeping dogs lie. But if I were to do the fix, I would do it in the fourth quarter. I did go back and fix one client's payroll records for all four quarters a few years back and I was amazed at how much time and effort was involved, Unless there are extremely extenuating circumstances, that ain't happening again. Good luck!

to drive some of us, uh, senior practitioners out of this business. I cite the continued major changes in the reporting requirements that some of us believe will not be fully understood and/or implemented before we take down our shingle sometime in the future. But the very real blaring proof of the conspiracy is the font shrinking on the W-2s and 1099s. Honestly, I find myself guessing at what the number might be and then I suggest to myself that that may not be very professional. So I get out the magnifying glass - and yep, I guessed wrong. Come on man! Help us out here. Some of us have eyes that are very well used and can not see those tiny fonts anymore. The fact of the matter - I am not a conspiracy theorist, but if I were...................I think they are out to get us! And while I ponder this, I keep hearing the theme that there are not as many young folks coming into this business to relieve the pressure at the other end. That has me very concerned. So carrying my conspiracy ideas a bit further.........well, never mind........................