Yardley CPA

Thanks for posting this. I'm now one of the newer members.

A first for me. Client has SSA-1099-SM reflecting Attorney Fees of $6,000. This amount is included in Box 5 and is taxable. Based on what I've read, that amount can be placed on Schedule A as a Miscellaneous Deduction, subject to the the 2% deductible. Never saw Attorney Fees listed on a SSA-1099.

I've been using it and it's been working well. At least, I think it has...this time next year will be it's test. I use only the first two columns, in this case the 2017 current and the 2018 future. I place zeros in the 2019 fields which zero's out the rest of the columns.

Estates are not my thing. A client posed this question to me: I have a Vanguard account that my Mom set up for me to distribute to my sons when my brother passed if he didn't need the money for his care. He recently passed. The account was worth $105,000 on 12/31/17. I have two ways to do this. Split it three ways and transfer the 5 funds to my sons or sell it and give them checks. The cost basis is $52,000. I could sell it all at once and pay taxes on the gains, or sell it over two years or three. What would be the best way to do this? I don't want the gains to change our tax bracket. We don't mind paying the tax on this. Does cost basis even come into play? I thought the basis was the FMV at date of death (in this case, I assume it would be the mothers DOD, not the brothers, since it was mother's account?) Would appreciate any advice. Thank you.

Do you require a client to sign a records release form prior to disclosing any information, at their request, to a third party? I have not had that request made of me in the past but since I will be enacting a rate increase for 2018, I want to be prepared if a client chooses to go elsewhere. Besides a copy of the actual return(s) and depreciation schedules, what other information do you normally release? I came across this example on the AICPA website and wanted to obtain your thoughts/suggestions: CONSENT TO DISCLOSURE OF TAX RETURN INFORMATION Consent A Federal law requires this consent form be provided to you. Unless authorized by law, we cannot disclose your tax return information to third parties for purposes other than the preparation and filing of your tax return without your consent. If you consent to the disclosure of your tax return information, Federal law may not protect your tax return information from further use or distribution. You are not required to complete this form to engage our tax return preparation services. If we obtain your signature on this form by conditioning our tax return preparation services on your consent, your consent will not be valid. If you agree to the disclosure of your tax return information, your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year from the date of signature. Please complete: (To be completed by the taxpayer.) Purpose for disclosing information: _____________________________________ ___________________________________________________________________ ___________________________________________________________________ Name and address to whom the information is being disclosed: __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ Duration of consent: _________________________________ I, ______________________________________, authorize (name of accounting firm/preparer) to disclose to ________________________________ my tax return information for 20___. Signature: ______________________________________________ Date: _______________ If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law without your permission, you may contact the Treasury Inspector General for Tax Administration (TIGTA) by telephone at 1-800-366-4484, or by email to: [email protected].

There's a lot of anger on that official board. Not like the informative and professional environment we've established here!!! <cough>

Edsel...I feel the same. I'm all for trying to keep my fee "reasonable." With that said, if the client chooses to give me a shoe box, or if they do not provide information in a readable and useable format, then my time is billed accordingly.

Abby Normal...totally agree. ATX makes you pay for credit for taxes paid calculation. I don't see how that is not included as part of the normal program.

Carol...please post if you do receive them.

How do you document charitable contributions of brand new clothing. Client provides pictures along with the receipts for brand new clothing she purchased and donated. I assume it is non-cash contributions documented as follow on form 8283 : Fair Market Value = Purchase Price Method Used to Determine FMV = Replacement Cost New Donors Cost or Adjusted Basis = Purchase Price Amount Claimed As Deduction = Purchase Price Is this correct?

Ahh....yes.. Yes. Now I see. "Nice" Very good. Thanks for clarifying that.

Rita...what does this mean exactly #%*& Letters” ???

Sarypion...I believe you have the ability to edit the letters. Not sure if you can directly pull information off the NYCT300 and NYC300 to populate the fields you need or not. I have not done that but you can edit the content. Take a look at how the current client letters are formatted...that may help you determine if there is a way to pull information directly off those forms.

Patrick...that's a good question. I heard there are several states considering this option. I'd like to think the states did their due-diligence and obtained guidance to ensure the "donations" made to the state-operated charity are tax deductible. But who knows at this point. I guess we'll need to wait and see how this all plays out.

Thanks for the update. I had issues yesterday and appreciate the notification.

I completely understand fees vary by region. Was just hoping for a general idea in any corner of the world. I live about 30 minutes north of Philadelphia. It's definitely a high cost region and I know my rates are no where close to what they should be. I do plan on increasing my fees moderately this year.

I recognize this is a topic that continues to resurface, so my apologies for bringing it up again. With that said, I received a call from a new client who indicated their current preparer is raising rates a minimum of $100 this year and inquired about my fee for a "basic" return. I do not quote fees without first having the opportunity to review the previous year return. That will determine whether it truly is basic or not. And I normally will not hitch my wagon to someone who is only looking to enter a relationship based solely on price. So, I set up a meeting with this client for Sunday to see if we're a match or not. But I couldn't help but wonder about their current preparer raising rates a minimum of $100. I guess they feel this is an opportunistic time to do that. With all the tax change talk, maybe he felt the time was right to increase fees that much. I also take that comment with a grain of salt...but maybe there is some truth and they are raising fees that much. My question is this...what are you charging for a return that includes: - 1040 with one State. One or two W2's within the same state. A bit of interest and dividends. Couple dependents. No EIC but childcare. - Schedule A - few itemized deductions (Real Estate Taxes, Mortgage Interest, Charitable Contributions). - Tax planning for the following year (use ATX Planner) What would you charge for the most basic return? 1040 with one state, W2, No itemized.

gfizer...by checking that box I think it simply prints the preparers name. I think TAXMAN is asking if the preparers actual signature can be digitalized and placed in that field?

What a s _ _ _hole question this is. I couldn't resist...sorry.

Excellent question, TAXMAN.

This article is a bit dated but provides helpful information: http://www.marcumllp.com/insights-news/states-require-drivers-license-for-e-filing-tax-returns I could not find anything more current concerning the requirement of drivers license information.

Has anyone received any type of IRS inquiry (Form 886-H-EIC or something else) asking them to substantiate a clients EIC filing? I only have a handful of EIC clients and have they're returns have never been questioned. How often does the IRS seek clarification/proof for EIC?

Maybe this post is better suited for the Drake section of this site?

Received the below email from a client who is forming an LLC in New Jersey. My experience is mainly in personal income tax prep and I do not normally deal with the formation of LLC's or Corps. It's my understanding that a corporation does not afford you significantly more protection than a Single Member LLC, ultimately if someone is coming after you, they will come after you personally once all the assets of the corp are exhausted. With that said, I have no experience or specific knowledge about that. The new tax law does provide the 15% rate for corps. This individual is MFJ and their combined income is in the $200K range. I have advised him of the specific requirements of an in-home office. I would appreciate your thoughts and suggestions on how to respond to this client: I have started an LLC as of January 3 2018 for consulting work that I have been asked to do. The income should not exceed 30k per year. I am reading some articles that say I should give the spouse 6% stock to get better tax rates, (which has to be done within 75 days of formation) or have the LLC taxed as a corporation so it is taxed at 15%. I do have an EIN number. What is your advise? I have started quickbooks online to track expenses, and I am adding the mortgage, vehicle lease, utilities etc so we can figure out what I can charge for the home office. I do have a room that is used as an office for the business. I know this is based on sq foot, so I will figure that out.