Richcpaman

You are actually seeing lawyer clients right now? None of mine get their stuff to me until April 14th.... Then I spaz out. But... They refer lots of Biz. Rich

Phone rings today: Me: Hello. Person: Can you help me out? Me: Sure. Person: "Is the 1040EZ form easy to prepare? Me:

None of the above. This isn't even the phone number on page two of the 1040. The client data had 4 phone numbers listed. This isn't the page two number. Stupid reason for a reject. If it is in your input, it GOES to the IRS.

Just had a return rejected by the IRS. "Rejected by Agency" Invalid number. The number listed was a telephone number in the client data setup. We had listed 9 digits instead of ten. WTF? Snowden had it right. Rich

59..... 58..... 57.....

It's a whole new ball game out there. Young couple in my office Both are Lawyers. New ones. Both get paid $60k each. No Kids yet, but one in the oven. Combined Student loan debt? $400k. They file separate to keep the payments affordable. They are NEVER going to pay off the student debt. At $300 a month each, it will never happen. Difference between Joint and MFS? $282 between fed and state. The payments on the student debt would have tripled. I have two couples like this. And more to come. Why get married? Rich

Its in my engagement letter that they signed: "I may process them though an outside service" They have already authorized me to release information that I believe that I need to release. Rich

Catherine: I will take any Maryland and Delaware Clients if you need to sell them piecemeal. I hope all of us feel much better on April 16th, or 19th, whichever day is sleep in day for you. Rich

RitaB: Is the backyard getting crowded? Rich

Well... I have noticed, using ATX and MD Returns, with Out of State Credits, if I delete the MD out of state credit form (502CR) early in the return prep process, put in the other states info in the states system, including info on the W-2 screen, the out of state info flows to the 502CR when I add it later and its all done. Sweet. If you leave the rollover 502CR, you have to put the other state info in manually. And I did not buy the ATX Advantage plan this year. Rich

NECPA: Have your client open a new account that is just an IRA Account. She can roll the dollars out of the SEP-IRA account to this new account if she wishes to. Don't debate the client about if she can, and certainly don't worry about Wells Fargo. If she can make a IRA contribution, then into a new IRA account it goes. Sort out what to do after April 15th. Rich

Glue balls! However, I don't have to cut apart the W-2's anymore... I have staff for that. I would tell the client that the retainer was already used up. Here's your stuff. Have a nice day. Rich

I think your preparer "friend" has the right to show you a return from someone else. If I was given return information by one of my clients and wanted to review a complex issue with someone who might have a special knowledge of that area, I think I am well within the requirements. That is what is happening with Terry. His "friend" has someone to run things by. It might be low end stuff or easy returns, but at least he is trying. Terry's "friend" doesn't know how to prepare a return. Doesn't mean that will stop him from preparing them. The system is designed to get returned filed, not that they are to be "correct". That would be a much more rigid system. Think about a 1099 for EVERYTHING. Rich

My problem is that the children's returns do not go thru this office. They go thru HRB or online and claim themselves. And of course they always say they don't. Feel pretty good today. Going to be a late one tonight, however. Rich

B: The partnership may have changed preparers, and instead of not reporting anything in Box 14 like they had in the past, the new ones put something in that box. ATX also changed some things, and is now defaulting to putting something in box 14. Your client gets a W-2 for her wages. Correct? While some may state that is incorrect for a partner to get a W-2 from the entity, it actually works in many respects. She should just have a guaranteed payments line for $100,000. This 1.51% interest is her share of the profits after actual business expenses, and clearly part of the "limited" partnership interest. I would ask for a corrected K-1. You may not get it, but you can ask. Sometimes it alerts the Tax Prep firm that they screwed up. File the 8275 if you want. Support for it is that the treatment is inconsistent in THIS year by the firm. Rich

The treatment of the donation is pretty straight forward, you get the basis in the policy as a deduction. I was hoping for something that might support the "Appreciated Asset" treatment if the 501c3 sold the policy for cash value after receiving it. Most examples I see have the Cash value far below the face value, so it makes sense for the 501c3 to wait for the donor to die to collect. In this case, the death benefit decreases each year, and the amount realized to the 501c3 is less and less as time passes. Rich

Taxpayer has fully paid up life insurance. He paid $4,200 in cash premiums in the 70's for the policy, and then the cash buildup took over. In 2015, the taxpayer donated the policy to a 501c3, which was properly acknowledged by the 501c3. Cash value of the policy is $42,000 and Death Benefit is $52,000. What can the taxpayer deduct in 2015? What if the 501c3 immediately redeems the policy for the cash value? What can the taxpayer deduct? TIA, Rich

I have. An extra $175 above your regular invoice if you want to drop it off after April 1st, and have it done by April 15th. I set up appointments for everyone before April 1st. If they miss it, they pay. My time is MUCH more valuable before April 15th. I file as many extensions as I can, but they pay if they do not want to extend.... Rich

Send a letter to the IRS. The Banker messed up. They get the FEIN, and state that the trust started in 2004. No, the document was signed in 2004, and it was a grantor trust till then. When they passed away in 2014, then it became IRR, and the trust needed an EIN. It all started at the death of the grantor in 2014. No need to file all those returns. You can, but I just had the same situation. I prepared a letter to the IRS and they replied that the first return was due in 2015. Rich

I am in the center of town. The courthouse square is right out the door. But you have to pay for parking. That keeps down the "Drop-by's". Rich

As of today, 3/15, we have 31 days left in tax season. If you are going to April 18th, Well, call me at the golf course. We are ahead of last year, but still below 50% mark for this tax season. That means we have to work harder.... Sweet. Rich

Its a correct answer if viewed as a math problem. Its bat shit crazy as a tax problem. Have fun on Monday! Rich

I bought a building last year after renting space for the first 11 years I was in practice. Client comes in yesterday, and says: "I must have paid to much last year, look at this place..." I commented: "You are right, I am doubling the bill for the new building surcharge" And then smiled. There is the gate. Do not let it hit you in the butt on the way out. And she wanted to spend 20 minutes discussing her "book" that she sold 15 copies of for a grand total of $150. And she had $147 in expenses. Sheesh. Rich

WOW. You are overthinking this. Claim the credit. If you are going to get into their shorts with that much detail, you have to back out. She has earnings, her husband has earnings, child care was paid, claim the credit. Rich

This is the post office's problem. The Post Office rules state that if something is delivered to your address that you didn't order/request/etc, that you have no further liability. So your neighbors are off the hook. And I am sure that there are other folks in other houses on the "court" and the "lane" that are experiencing the same problem. Everyone who lives on the "court" and the "Lane" would have to get together and address it with the regional postmaster. Meaning, not your local post office, but the folks in charge of ALL the post offices in your area. The folks in the other house may be jerks. And you are a nice guy about giving them their mail, but... Rich