JohnH

Off the top of my head, they probably have some of their "Payroll Items" set up improperly.

I thought it was Kneecap & Trade.

Maybe you now know why the former tax preparer IS the former tax preparer - he chose to be.

JacK: I thought about you when he called, and I regret not having asked his name. Maybe should have said "Are you the guy who owes Jack a steak dinner?" Maybe I'll remember to do that next time they call this month or next to absolutely finally offer the already-expired discount yet again. No telling what will happen as long as the sales department is under the control of Seagull Marketing Geniuses.

You probably need to read up on QDRO's. I handled one for a client a few years ago - don't remember all the details but this one was messy.

Just posting this strictly as a matter of information. ATX called this morning (Oct 2) and offered the 10% discount if I'd go ahead and re-sign. (I don' think he asked me to resign, although that's a distinct possibility if someone has noticed my comments on this forum) I didn't ask about specifics such as when I'd be charged, who pays S&H, etc. Of course I told him "no thanks" and to call me back in December if he'd like, but just thought I'd put this info out there in case anyone is planning to buy soon. Seems like the discounts are still available, unless maybe they're not available if you do ask but are available if you don't ask (I have actually seen that sort of counter-intuitive policy nonsense put into practice in a corporate environment before) One never knows when they're going to absolutely, positively, emphatically, without-a-doubt, and with-no-exceptions actually eliminate the discount.

Form 8821 maybe?

It could also be that the previous accountant didn't endorse the setup or perhaps just recently learned about it. As a result, he found that he was too busy to sign a return under these circumstances, rather than too busy to prepare it. Whatever the case, this one has "PASS" written all over it.

In "Getting Things Done", David Allen recommends the following: 1) Set up a trusted system to keep track of all your open loops and Next Actions; 2) Go to Lowes or Home Depot and buy some crime scene tape. 3) Wrap the crime scene tape around the clutter. 4) Whenever something is removed from the clutter, do what needs to be done with it and put it in its proper place in your trusted system. 5) NEVER allow anything to cross the crime-scene tape in the opposite direction (back into the clutter)

Aparently this is similar the the "Produce the Note" strategy that has been successful in several states to delay foreclosures. I remember sending info on this to a client back in Feb, but I never heard what happened to him. http://www.huffingtonpost.com/2009/09/22/w...o_n_294169.html

Here's one way to do it. Others may have a more elegant solution. Go into the "Preparer Manager" and set up a "Firm" with no name. The easiest way to do this is to enter a character in the "Firm Name" field, then backspace it out. You should then have a line that is completely blank of all information. Choose "Enter on Form" and you'll find that the Paid Preparer and "Firm's Name" info is blank for that return only. NOTE: If you have modified the master to always have the Third Party Designee info appear, the above won't remove that info - it will still need to be blanked out separately with an override. Also, I don't know how any of this may affect electronic filing - I only paper file and this process works for me when it's needed.

Yes, yes, we know. All the problems of this country began during the previous administation. Can't find a single problem of any sort that had its roots in the period prior to 2000.

If they offered online backup I'm not sure I'd use it. I'd be afraid they might shut it down on Apr 12 just because some management committee decided it's no longer in their best interests to keep it up & running.

The 10th won't work. I suggest you set the cutoff date around mid-March. Anything coming in after Mar 15 - 20 automatically goes on extension. If you follow a policy like that, you'll find that you actually get more done in early April because the upfront decision on the bulk of your extensions is already made. If you explain to the clients that the extension simply gets Apr 15 off the table as having any significance, you're better able to manage anything that comes in around the 15th that actually deserves attention - you're not distracted by the procrastinators. (You can wait and deal with them on Oct 15).

Oct 16 probably starts conflicting with early Halloween vacation schedules. You can't be too prepared, you know. No sense inconveniencing anyone in the office when a simple memo to the preparer community solves the problem for the bureaucrats.

Tell your client that the "ding", "ding", "ding" sound he's hearing in the background when his friend calls him is a BS Alarm. He should listen to it.

Joan: I was a little brief in my response and I didn't provide enough info to explain myself. I plugged the numbers into a dummy 2007 return just to see what happened. In order to hit a taxable income figure of $25,544. there had to be $19,425 of unreported income. However, the only way to get there would make only $8,7209 of the SocSec benefit taxable, whereas the IRS notice is pulling the entire 85% of it into income. The only way I can get $18,355 of SocSec to be pulled into taxable income is to add $30,760 to non-SocSec income, which yields a tax liabiity of $6,189. Maybe there are dividends, CGD's, a 1099-B, or some other variable not presented, but there's clearly something wrong with the notice. Incidentally, adding $30,760 in qualified dividends does get us closer - the tax in that scenario is $3,114. Maybe there's some combination of qualified & non-qualified dividends and/or fully-taxed capital gains that produces the tax liability. (Or maybe they received $30.76 in dividends and someone at IRS let a decimal slip).

Based on what you provided, I think the IRS notice is in error. Even the amount of tax due doesn't tie back to the taxable income as adjusted. There's a math error somewhere or some important piece of data is missing.

Catherine: Forget the Valium. It's time to adopt the attittude that "I don't GET stress from my clients; my job is to PROVIDE it for them."

Looks like 2010 will be the year for another "across the board"increase in tax prep fees.

How about this response? "Well, Mark, you should know that IRS has the phones of all tax preparers tapped so they already know you're trying to get this agent in trouble. How many calls like this have you made before you called me?"

Sounds like that CO alarm might give you a pretty good reason to request a penalty abatement as well. Did the fire department come out when the alarm sounded? A copy of their call report would be great documentation for a "boo-hoo letter". Also, mind if I use that excuse sometime in the future? It opens up all sorts of excuse opportunities...

Looks like I have a couple of S corps who will be paying the penalty - $89/month for each shareholder. All one can do is tell them...

Or maybe they're trying to be intentionally confusing. Next thing you know they'll be having us order the forms from a Mitsubishi Motorway address in Japan. Anything to force people to migrate over to EFTPS.

Gene: I think that should be "1201 N. Mitsubishi Motorway". (Not saying that you made an error - I think the Post Office may have made one in what they sent back to you. Those yellow labels are notoriously inaccurate)