ILLMAS Posted January 6, 2021 Report Posted January 6, 2021 Back in the early to mid 2000’s mortgage lender would quote a buyer a monthly payment that included escrow, the day of the closing they would tell the buyer I lowered your payment and the buyer was happy. Well it turns out brokers were just removing the escrow ( and adding additional closing fees) and would let the buyer find out they had to shell out $$$ down the road. I see many tax preparers doing the same thing to Sch C clients and telling them I saved you 50% of social security and failing to disclosed it has to be paid back within two years. Will this give a bad name to honest tax preparers? If it wasn’t for the financial department requiring brokers/lenders to issue good faith estimates, this practice would of continued to today. 2 Quote
Lion EA Posted January 6, 2021 Report Posted January 6, 2021 I'm going to have to explain the options to Sch C clients (and take up even more time explaining lots of new tax laws) for them to decide. If I don't tell Sch C clients and Congress decides to forgive the deferred SS (my crystal ball predicts a D Congress might), clients will be mad at me that they didn't defer, kinda like PPP. I'm more angry about having so much to explain to Every. Single. Client this year than I am about a few bad tax preparers. 5 Quote
Medlin Software, Dennis Posted January 6, 2021 Report Posted January 6, 2021 Must be a Catch-22. Don't explain and possibly get grief, explain and either get grief from the fee for your explanation time, or get internal grief for not charging for your explanation time. Out of all of my customers, I think I had one employer defer for their employees (against the advice of their payroll processor). 5 Quote
Randall Posted January 7, 2021 Report Posted January 7, 2021 19 hours ago, Lion EA said: I'm going to have to explain the options to Sch C clients (and take up even more time explaining lots of new tax laws) for them to decide. If I don't tell Sch C clients and Congress decides to forgive the deferred SS (my crystal ball predicts a D Congress might), clients will be mad at me that they didn't defer, kinda like PPP. I'm more angry about having so much to explain to Every. Single. Client this year than I am about a few bad tax preparers. I know anything is possible in our whacko world. But if they forgive the deferral, how can they not give credit back to those who did not defer. 2 Quote
Medlin Software, Dennis Posted January 7, 2021 Report Posted January 7, 2021 2 hours ago, Randall said: But if they forgive the deferral, how can they not give credit back to those who did not defer. Likely the similar wonder of those who have had student loans in the past, should current loan holders receive forgiveness. 2 Quote
Lion EA Posted January 7, 2021 Report Posted January 7, 2021 Like people who did not apply for PPP Loans because they wouldn't be able to deduct the expenses paid with them anyway. Now... Quote
Medlin Software, Dennis Posted January 7, 2021 Report Posted January 7, 2021 6 minutes ago, Lion EA said: Like people who did not apply for PPP Loans because they wouldn't be able to deduct the expenses paid with them anyway. Now... I still do not understand that thought. Even if the person/entity had a 70% effective tax rate, the benefit would have been 30% of the PPP. Even if it was a wash, being able to pay employees (those that did not want to be on the dole) was a good thing. Quote
ILLMAS Posted January 7, 2021 Author Report Posted January 7, 2021 I have a friend who always say, I should of played the lottery. Quote
Lion EA Posted January 7, 2021 Report Posted January 7, 2021 Medlin, I can't help how people think, especially non-clients telling ME why they do what they do to save taxes! But I know I need to lay out the options for my own clients and let them decide, even when I think I know what's best for them. 2 Quote
Medlin Software, Dennis Posted January 7, 2021 Report Posted January 7, 2021 1 hour ago, Lion EA said: I can't help how people think Indeed. For me, I get many inquiries asking how to do things which are not allowed. I stick to the rules, then get told I am inflexible. Or, as happened earlier today, someone asks about starting to use my payroll software, and based on their questions, I ask if they have any experience or training, and when they say no, I suggest they will be better of hiring out their payroll until they can gain experience and training. Usually goes over well enough, but some try to make me license to them, which I refuse, because I am not in the business of teaching payroll accounting. It is one of my exceptions to there being a price where anyone is worth having as a customer. 3 Quote
Catherine Posted January 8, 2021 Report Posted January 8, 2021 20 hours ago, Lion EA said: I can't help how people think Most people can't think, most of the remainder won't think, and the small fraction who do think mostly can't do it very well. --Robert A Heinlein 3 Quote
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