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how about a state of confusion?

I can not blame the doctors, they can't operate their offices if the payments are less than their costs for the service. The new laws have already driven many doctors to either become employees of hospitals, etc, or retire, simply because of the cost of new equipment needed to comply with the requirements for computerized records. It's going to continue to reduce the number of doctors in rural locations, for sure.

An EA I know here in Mass who specializes in OICs recommended to me several years ago to put in a very lowball offer, get it rejected, and get to Appeals as quickly as possible. The idea is that only the folks in Appeals have any real authority to negotiate -- the "regular" office staff are only able to agree to near-full-payments. Worked for me the two times I went all the way through. After which I decided that trying to do OIC's as a one-person office is madness; tons of paperwork up front, the IRS offices ignore you for months, after which time you get maybe two weeks to re-do all that paperwork while every other client's work gets ignored. No, thanks - I have easier ways to hurt myself! YMMV.

Year after year, the one thing I use most is the dependency worksheet (page 30). Its value did not diminish with the Qualifying Child rules. Pub 17 is not the only place to find tax tables but it is as convenient as any. Other sections I turn to almost every year include the definition of alimony and the energy credit details. Anything else a client doubts can usually be quickly settled with Pub 17--casualty loss and 401(k) hardship withdrawal at least every couple of years. Sometimes I tell a client to just get the whole thing to read about business expenses, or Pubs 535 and 463. Actually, now that the Internet is so fast and easy I prefer the individual pubs, which sometimes have more detail about how to apply the rules. (Almost as often I read the instructions for forms.) Obviously all this is in the public domain so any other tax guide covers it. (Except that I know of nothing better than Pub 15 Circular E for clients with employees.) The great advantage of the official text is the amazingly understandable language it offers. I use it with colleagues as well as clients. But unless I already know exactly where to look, I usually start with Quickfinder 1040 or Small Business. These are essential in two ways. First, they give a little perspective on which rules are more common and important. And they give citations so you know whether you're dealing with the code itself or some ruling of narrower interpretation. One more thing--even if you never use it yourself, make sure you have a dog-eared copy of Pub 17 to casually drop out of your briefcase any time you meet with an auditor. For some reason, they really like that book!

You have to run these tests: citizenship, support, gross income, joint return, relationship to make sure you are correct. May be the GF has a part time job??

I just wanted to wish everyone Happy Holidays!!!! MAS

Merry Christmas, Happy Holidays, and a happy, healthy, and prosperous 2014 to all!

Oh,my, I LOVE THAT What a wonderful idea!

Pub 17 is written in such plain language that I like to keep a copy on my desk for the clients' sake. Sometimes you can tell that they're uncomfortable when you inform them that they can or can't do something (claim a dependent, deduct whatever). The pub is so well indexed it's easy to grab it and read the rules aloud in terms they can understand. They think you're reading the Tax Code to them or some other authority and it does put them at ease. And it's still free!

I love it when folks know so much more than I do and share it! There are so many tricks in computers and software - the unused power of virtually anything is mind boggling to me. Most of it - who cares? But little helpful hints can make such a difference.

Nice, Jack. Thanks.

Probably my favorite "Far Side" cartoon as well. Attachment is for your viewing pleasure (if this is some sort of copyright infringement somebody please tell me) FarSide.pdf

An elderly man in Oklahoma calls his son in New York and says, "I hate to ruin your day son, but I have to tell you that your mother and I are getting a divorce; 45 years of marriage... and that much misery is enough!" "Dad, what are you talking about?" the son yells. "We can't stand the sight of each other any longer," the old dad explained. "We're sick of each other, and I'm sick of talking about this, so you call your sister in Hong Kong and tell her!". Frantic, the son calls his sister, who explodes on the phone. "Like heck they're getting divorced," she shouts, "I'll take care of this." She calls her elderly father immediately, and screams at him, "You are not getting divorced. Don't do a single thing until I get there. I'm calling my brother back, and we'll both be there tomorrow. Until then, don't do a thing, you hear me?" she yelled as she hung up the phone. The old man hangs up his phone and turns to his wife. "Okay", he says, "it's all set. They're both coming for Christmas and paying their own air-fare."

I think some people are confusing Medicare and Medicaid. Medicare is for those who are at least 65 years old or younger if disabled. It is paid for through payroll taxes and retirees' premiums for all parts except A. MEDICAID is free medical insurance for the recipient, paid for by taxpayers in the state (supplemented by a federal contribution, paid for by all taxpayers). This is no different than when taxpayers fund the cost of an indigent elderly person's nursing home stay. If that person gets a windfall or wins the lottery, the taxpayers should rightfully be paid back, no? It is right in a just society for people to pay for the care of someone who has nothing. It is not right for the recipient of this benevolence to hide their assets or balk at the thought of paying back what was given to them when they were in need. This is no different than people who connive to give away their homes, bank accounts, etc. so they will qualify for Medicaid ("free" nursing home care). Their kids get all their assets and we sucker taxpayers pay for their care while those kids live in luxury. In prior generations people saved for their old age and cringed at the thought of public assistance. Now it is thought of as a right. I have no problem paying extra taxes so that people who can't afford medical care can get it. I have a big problem when those people think they have no obligation to pay me back when they are able.