JohnH

Listening to today's news, now I'm wondering how many clients are going to be keeping every receipt for hand sanitizer, masks, sanitizing wipes, etc because IRS announced today these are deductible as medical expenses.

Besides, every client always says “My situation really isn’t all that complicated.” We can believe them. And all you need to do is press a button to send it - right?

I don't have a lot of clients who filed for unemployment, but of those who did, I've prepared extensions as soon as the info came in. I don't intend to look at them again for at least 3-4 weeks.

And we haven't even started a conversation about claiming losses and basis limitations for S-Corporation shareholders. Some VERY interesting & unusual stuff can take place in that space.

I received a 4883C in early Dec 2020. (Not the same as the inquiry your client got, but similar I think). The agent I spoke with couldn't or wouldn't explain why I received it. Anyhow, we got the identity verified and all was well. But it spooked me, so this year I opted in to the ID Protection PIN program as soon as it was available.

I'm printing out this thread for further review & consideration. Very interesting discussion, and may be relevant to a client situation I know is coming up shortly. Many thanks for all the comments. (I love this forum)

Bonnie: Based on the info provided, I'd probably tell him I'm not interested in doing his work. And he needs to act quickly since the penalty clock is running. He qualifies for the "needs to be somebody else's problem" category for at least 3 reasons. Right now especially, this should be all about what's best for you, not about solving self-inflicted wounds for problem clients.

I'm pretending it hasn't changed. Still filing extensions before Apr 15, unless the client info fails to show up. A month is something, but not much.

Solid advice. Extensions are life savers and sanity checks, especially at this time of year and in these unusual circumstances.

Really.

Give them this video:

Rita, so sorry to hear of your loss. Praying for the grace and peace of God which passes all understanding for you and your family.

Imaginary conversation next week. CL: (Monday) "When do you think I'll get my $1,400?" ME: "Maybe Friday" CL: (Friday) "Hey, it's Friday and I didn't get my check!" ME: "Oh, sorry. Did you think I meant THIS Friday? I did't say WHICH Friday - we still have 40 of them to go in this year alone."

Don’t worry. As soon as they read the news or talk to their friends they will be calling YOU.

My crystal ball almost always flashes “4868” when there are any questions or potential issues.

Well, I completely agree with Rita, having qualified as an expert switch-picker when I was a young lad. (Except for that time I showed up with a rose bush stem and earned myself a second whipping for being a smart-a$$).

I've encountered two situations where the wife received the $600 in Jan but the husband hasn't received anything. Nobody has yet given me a 1444 of any kind.

Yes, an interesting predicament. I'm just laying out the scenario where it applies and telling them to let me know whether they want to file a Federal extension or "just go for it" as things are right now. One thing I'm not going to do is hold onto the returns waiting for IRS or Congress to extend the filing date. If the client want to wait, then an extension goes out immediately. Once their info is in my hands, I either want it out the door on the first pass or send in an extension. (Less stressful for me that way).

I know discussing upcoming legislation is often an exercise in futility, but here's an interesting take on how filing early this year MIGHT be problematic for some people. (If you don't mind clicking a link) It applies to those taxpayers fortunate enough to have experienced an INCREASE in income in 2020 over 2019. Just wondering if anyone else has run across anything along these lines? https://currently.att.yahoo.com/att/lose-1-400-stimulus-check-210600457.html?.tsrc=daily_mail&uh_test=1_11

If parents forego claiming the child/student under age 26 as a dependent, wouldn't there be a risk of not being able to cover the child on the parents' medical insurance?

I tell them the same thing I’ve always told them - “we’re filing an extension”. Doesn’t matter to me whether IRS extends the date or not. I’ll be filing some extensions this week.

Well, I can now confidently state that the Jan 15, 2021 date for the $600 per person second stimulus checks to be received is irrelevant. Today, Feb 4, a client called to let me know they received their check in the mail. This was a retiree, whose first stimulus payment (last year) was direct-deposited to their bank account. So now we know that there will likely be plenty of confusion over whether to claim the second stimulus payment on the 2020 tax return, especially for early filers.

When I skimmed over your post, I first thought $400 was what they wanted to pay. But then I thought, "sounds like $400 should be a reasonable fee for looking over that return (before declining)".

There really isn't any liability... until there is.

I never touch FBAR. Too much liability at stake. I document that I advised them of the filing requirement & penalties and leave it at that. If someone tried to insist that I file it, I would view that as a deal breaker.