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What answer would you like?

If we were going to commission a special, tax-accountant's version of the Magic 8-Ball, what should be the "answers" on the ball? It depends $500 Answer hazy; Congress is in session Suggestions for others? Let's have some fun with this; be outrageous!

Oops, posted too soon. I've take the discount for all the years prior but now use only 1040 package so it's only $140 or so. With back surgery Monday and moving in June, I'm not sure whether I will continue. My healing process will determine. When I used MAX for many years, it was worth it to pay early as the amount was more significant. And then one year someone posted that they got the discount in the fall after all. Maybe begging and pleading was involved - or bribery, who knows? I am passing this time. YMMV

I have always taken advantage of the discount

Last year my client had paid into a Roth which was over amount allowed and was charged 450 bucks (7500 x 6%). This was actually the first time that I had a client that kept the Roth IRA contribution and paid the tax. But I didn't expect to see it again on the 2024 return! What the heck. Carry forward the 7500 and hit me again? I've never had to look at this before. Just when I thought "I knew everything."

I don't believe that they will budge. I paid the price and am moving on. However, due to the shower of mundane dunning letters from the IRS, I am having second thoughts. Also, last year I was very ill after paying for the program. I almost didn't make it back. My personal contact with ATX for many years did assure me that if something similar wee to happen, I had until the release of the program to opt out and request a refund. But, since I now work alone, who would be there to collect it for me?

I never saw it, but appears to be true. Clients are angry and frightened. There doesn't appear to be a way to assist them. Incidentally, my personal letter regarding a payment they want, was originally paid with an EFTPS. I am supposed to be on vacation before tackling the last of the extensions; but I cannot settle and I cannot relax. Every day comes another notice from a confused client.

Of course I can't find it now, but wasn't there an admission that the IRS computers are sending out erroneous balance due notices?

I received a notice that this Saturday is the deadline for early bird renewal. Does anyone believe this is the best price available or are you holding out?

Just had another call yesterday from a client who got a letter saying that he owed over $5K. He never owed that much and I, personally, assisted him with Direct Pay. I am quickly reaching the point where I regret committing to another year of tax prep. No matter how right you are; you are still wrong. The IRS is making us look like a bunch of Idiots.

@mcb39 "I just got a letter saying that I owe them the amount that I had direct withdrawn the day that I filed." The payment coupon that came with the letter you got. If it says you owe money, it should include a way to pay that - including a coupon to send in with a check. Or at least a "mail payment to" address. Use that.

Yes, but it doesn't tell you to what account and/or to where it was posted which is why I prefer Direct Pay or EFTPS.

No Payment coupon. My proof is a statement from my bank that the money was issued to the IRS on 04/24.

Mail a copy of the proof of payment to the address on the payment coupon sent (along with that payment coupon). Add in a note about expecting the penalties & interest to be reversed since they have had payment since the due date. Highlight the date of payment on that copy of the payment receipt. Eventually, they'll catch up to it and fix it.

The IRS encourages tax professionals to register now for the 2025 IRS Nationwide Tax Forum, coming this summer to Chicago, New Orleans, Orlando, Baltimore and San Diego. https://www.irs.gov/newsroom/tax-pros-register-now-for-the-2025-irs-nationwide-tax-forum

No, the instructions to Schedule E line 12 would be good place to start your research. No business purpose means no business (or rental) deduction under section 162. Suggest you research the definition of "acquisition debt".

If your tax biz borrows money against the biz and uses it to pay off the mortgage on your primary residence, can the biz deduct the loan interest on your sole proprietorship or, in your example, on the partnership return?

It's not acquisition debt because your client hasn't acquired anything.

Perhaps the payment was misposted.

Thank you Gail for response. I'm sure none of the parties are considering a "sale" to the LLC with gain or loss, but more of a "transfer", i.e. the property has the same basis as the taxpayers prior to the transfer. And the only question is whether the "tracing" rules will insist on forcing interest to be deducted on their primary residence rather than the LLC. Since it is a new loan, it smells like acquisition debt, but the purpose is an obvious replacement of their old residence loan.

Plus Penalty and Interest, no less

Just wondering if the LLC involved more members, such as children of the taxpayers, and the LLC borrowed money to buy the property from the original taxpayers, then it would be acquisition debt. Of course, the taxpayers would have to pay taxes on any gain on the sale of the property. And since it would be a related party sale, they could not deduct any loss due to the reduced market values in Memphis. I am NOT recommending this - more like thinking of possibilities.

It doesn't meet the definition of Acquisition Debt, Home Equity Debt or Refinanced Debt.

If you are not licensed, you cannot legally give investment advice. Series 6, 66, 63, and 7 licensures (or some combination of those). However, as Judy says, the tax benefits (or detriments) of IRAs or other investments is something we can - and should discuss. Start out with "not investment advice; tax consequences only) and reiterate that at the end, too. Along with "talk to your investment advisor." Also remind the client that any tax advice from the investment advisor is suspect. I do wish we could get the licenses of investment "advisors" who give tax advice yoinked the way ours can be for investment advice. I've heard - heck, we've all heard - preposterous and expensive and generally horrible "advice" our clients blithely followed from their "stock guy" that blew up in their faces come tax time. And far too often, we've been hit with the blame and/or the anger.

Ahh, the good old scent of nasty volatile organics. We refer to them here collectively as "methyl ethyl death."