mcb39

1. Old client and friend goes to technical college to save money on tax prep
2. I tell client to let me look it over, I will not charge to look at it
3. Return is a mess. Over $4000 in mortgage interest is on Line 8a, Taxable interest income
4. I will amend return and charge a fair fee
5. Client comes yesterday to pick up amendments (Fed and WI) Client says she has not received
refund yet for return filed in March.
6. We call WI and IRS...neither has a record of the return which was supposedly efiled.
7. I redo entire return and e-file. Both are accepted so were never filed before
8. We call tech college and response is "You know these are just students preparing returns but
the supervisor is supposed to check them over. I will connect you to the supervisor. OK, but
received disconnect rather than connect.

Now, this may be an isolated incident, but I tend to think that it may be fairly common. Client would
have waited forever for refund which would never come because return was never filed. Who would detect the errors?

Say what you may about calling clients who don't show up; but if you know them well and they have been with you forever, I have no qualms about calling just to make sure their needs have been taken care of. Both I and my client are very happy that I made that call. I would have happily backed off if their returns had been in order and we would still be friends.

Again, I ask, "Who Needs To Be Tested?" This is not the first time that I have seen the work of the underling to be not properly checked by the person holding the credentials.

It is almost like an epidemic this year. Have only had a few clients with full and happy rentals. The morale of this country is in the dumps.

Have a client who sold a piece of land to the state unwillingly. We are trying to build some basis in it but it will not be a lot as it has been his and before that his parents' homestead for many years. He acquired it in 1988 and the state took it for part of a highway. He received $73200. He is normally in a 15% bracket which means no CG tax. Instructions for 8949 say to leave columns b and g blank as he did receive a 1099-S. If I do that, it leaves him with no gain.

If I put the amount of the gain thus far in column g; the tax is then figured on the CG tax worksheet. Am I thinking correctly that some of this gain should be taxed or is it possible that he really will owe no tax.

There is also the possibility of deferring the gain as it is part of his homestead which he has now listed for sale as they took a large portion of his yard and the road will pass nearby his house. There is also that inherent clause that states if you sell land that is part of your homestead either 2 years before or 2 years after the sale of your main home; you can defer the gain.

Can one of you wizards give me some guidance on this. I have read every book and Pub to the point where I am second-guessing myself.

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I just had to prepare returns for a client for 1999, 2000 and 2010. Really had to be careful with the data entry for those years. This program has changed SO much over the years. I even got to hear the Tiger roar in 1999.

Apparently this fellow never filed in those years so the IRS has put a lien against the house he was buying on a land contract and has surrendered to the seller. Now he has to clear the title to the property. It really seems to be true that some people would have no luck at all if it weren't for bad luck. This man is physically disabled (and probably mentally as well). His X-wife who is taking care of him brought in the paperwork. On top of everything else, he would have had refunds from both Fed and WI for all three years. This one is pro bono.

Everyone have an awesome weekend.

A couple of years ago I purchased a new laptop. I then purchased a Targus laptop carrying case on Ebay. It was impossible to tell it from new. I had been happily using the case for over a year when I couldn't find something I needed and decided to explore all the pockets in the case. In an obscure side pocket, I found a Lexar 8G jump drive. Now this is really strange as I don't own one of those even though I DO have several, each of which has its own files and uses.

I put the drive into my USB drive and opened it in explorer. Would you believe that this drive contained someone's Income Tax Return from, I believe, 2009. Now, here was the perfect scenario for identity theft. After thinking about it for a few days, I formatted the drive and erased everything on it and am now using it for music and payroll backups. Had this landed in the hands of someone other than a Tax Practitioner, hard telling what could have happened. Just goes to show that even though these are the most wonderful of devices, there is a danger in losing, mislaying or lending it to anyone else. I have since purchased a small zippered case just for the purpose of keeping all of my jump drives in one place at all times. I never worried about it before. I always "thought" I knew where they were at all times. Apparently, this fellow didn't remember sticking it in that small side pocket before selling it on Ebay. Just a lesson here for all of us.