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MsTabbyKats, looks like we have all been attending the same IRS pep talk seminars. I will not be turned into a government law enforcement officer until they put me on their payroll. I am an income tax preparer. Over the past years, something is shifting in their treatment of our profession. We are now working under constant threat of severe penalties, suspension of our PTIN, and disgrace. Since the sophistication of computer technology, the tax laws have become so crazy, that even professionals will arrive at different outcomes when preparing the exact same tax return. Sometimes we are at the mercy of the quality of the tax prep software that we purchase. We have an adversarial relationship with the IRS and now our clients. I can remember when kids didn't have SS numbers; I prepared returns with a pencil and calculator; i had a wall of reference books with weekly replacement pages sent to keep them updated;I would call the IRS help centers and their answers were usually flat out wrong. And it was all kinda fun. I did fewer returns, but made more money per return. To be profitable today, we must operate like a factory. Don't get me wrong, we still find ways to have fun, enjoy our clients and take pride in our work. It helps to have a network of peers who understand the pressure and offer real solutions to problem situations. That's what I find here. I will continue to fight the good fight. Bring it on!

Terminating S-status does not revoke the election to be taxed as a corporation. (Reg. 301.7701-3( c)(1) might address that.) But be careful--if the new shareholder comes on 12/31, you must file two short years! Unless that's what you want, have the termination be effective on the FIRST day of the next tax year.

I will be in central Wisconsin Friday morning Dec. 27 till Sunday evening December 29. I have time on Saturday and Sunday with no schedule. If anyone in that vicinity is in need of ATX or computer assistance, contact me with a PM and I will see what we can work out. Friday is already filled, and would like to fill the other days to be productive. Just send me a PM.

Hi KC -- Thanks for your concern. We're fine here; a little light snow today and very grey skies. Pretty doggone cold yesterday; today is less frigid. That's all.

Sign what? Where? He's already signing the tax return under penalty of perjury, so what good is signing something else not under penalty of perjury? How can he sign off the professional's responsibility anyway? Why would a professional sign a return under penalty of perjury when she doesn't believe it is true? Even worse, why would a professional want to sign under penalty of perjury, KNOWING that it is false? And I don't mean the client data. If a professional feels "my job is to take the papers he gives me," why not have him give the papers? Weird.

Not sure about the keyboard, but hack the mouse? Does not make sense. I LOVE wireless mice. No way I'd give up mine.

This was good, my thoughts exactly. Just ask questions, document and you have done your part. Ta-da. Put me on the government payroll and I will make every client take a lie detector test!

Wow...I think we're all getting a bit paranoid. Me included.......... I did have a few that were questioned by IRS (a few years ago) and lost the credit....but that was it....they couldn't send proof that the children lived with them (school verifying child's address, or doctors letterhead stating the child was a patient with the child's address)......nobody went to jail, nobody got a fine.....just nobody got the credit. Verify as best you can where the kids officially live...and the relationship. And....if things just don't make sense....and if you feel uncomfortable with the return....don't do it. We aren't the tax police or social services. Most important....the "dishonest people" know very well what they need to tell you for the EITC....people lie. So...get that 8867 signed to CYA. (LOL...my best ever was "a married couple" with a huge refund. The $$$ was going into his account. About 2 minutes after I e-filed....she called me all upset. Seems they weren't really married and she was upset the money was going to his account. Now...should we be asking for marriage certificates too? If they say they're married...I take that at face value.)

Very true! But we would see it when we got back and (1) know we'd been thought of kindly, and (2) been able to answer at that time.

Being an attorney does not automatically make you a tax professional. Just as being a tax professional does not make you an attorney. We have all had our experiences with these types of situations. Therein lies the obligation to do due diligence.; which you must have done.

How important IS it? I don't give significant tax or investment advice, I'm pretty good with documentation, and I don't take aggressive positions anyway. So I consider my risk very low.

PaCun: You stated this: "how about the ones that only get $5 as EIC? If you prepare 600 of those claims, you are not likely to be checked by the IRS, but if you prepare 600 returns with $4000 EIC claims on each return, you are likely to be questioned." Do not, for an instant, presume that the IRS is doing this. That is what makes all of this so stupid. We an go around and around on this forum, and the real problem isn't with anyone who posts on this forum, or ones like them. Sure, some of us might be "lucky" enough to catch a field audit on our EITC filed returns proceures... But I doubt if any of us would end up having our business's closed down... You just look at the IRS's own PR about shutting down fraudulent preparer's... They are about two-three years behind, and never catching up. All this impacts those of us who are compliant and trying to stay with in the rules, but it is effort wasted. Rich

We've got some family downstate without power, but they're doing fine with their generator. This far north it's been too cold for freezing rain. Just lots and lots of snow.

No where near me, Long Island is spared from this. Thanks for the concern