Leaderboard

I know it is not my place to judge or preach to clients, but sometimes it makes me soooo angry. Single mom client quit her cleaning job in June because they made her work nights...which, in her words, "did not allow for any fun time". She had income of approx. $10,000 for the year. Started her own "business" making jewelry....although admittedly, she did not advertise or actually try to sell any of the jewelry that she made. Nonetheless, she proceeded to tell me her utilities and other household expenses. She only paid in $460 in Fed tax for the year....and with her education credit for her kid's college and EIC, her hand-out...I mean refund is approx. $4600.....not bad, I thought. AND SHE WAS UPSET! She feels that that is just not enough....."How am I supposed to live on that?" she screams. I attempted to politely inform her that tax refunds are not a social safety net such as food stamps and welfare..and that a refund is not targeted to her social situation. However, then she started on a rant about why I would not let her deduct all of her "business expenses"...such as repairs to her car so she could go to the wal-mart to buy jewelry-making supplies. She also tells me she got offered a job at Burger King, but turned it down because it was too degrading...yes she said that. I did not just make up my ATX screen name...I earned the "Janitor" designation over several years proudly working one of those "degrading" jobs at night to make ends meet. I did not even try to explain that even if her expenses were deductible, they could not further lower her taxable income which was already zero. I can tolerate tax-ignorance....after all....that is why people pay us...just like I am car-ignorant and pay to have my oil changed. but I am so sick of these people who think they know taxes and feel that society "owes them" more despite the fact that they are already living off of my tax dollars because they just do not want to work hard or do something yucky like clean out a deep fryer....or, God forbid, work inconvenient hours. I don't mind the occasional struggling parent who works hard and get a nice EIC...yes...some do deserve it....but that is the exception...the above seems to be the rule. OK..rant over...I'll climb down off of my soap box now.

Yep, the thing that bothers me is not that someone gets the benefits of our 'safety net', but that so many of them not only take it for granted with no gratitude, but actually gripe about it not being enough. When the 'safety net' turns into a hammock, you know it's grown too much, or needs repair.

Call her to tell her you'll deduct her ratio of actual expenses for her car's business use. That should reduce her income and lower her EIC and drive her away for good. Did one yesterday with nearly $10,000 in refunds from IRS and CT. Her mother cares for the three kids frequently for free. Her boyfriend contributes financially, but apparently not more than 50% of housing costs (lives elsewhere). Last year she bought a car with her refund; this year it's vacations. If they were married, that $10,000 would disappear. They will probably never marry. If I divorced my husband...

This woman is 52 and her daughter went to the same private school as mine...the only difference being that hers was free through church grants and I had to work nights as a janitor to pay for my daughter's...she was entitled then and still is today....I had hoped that moving out-of-state with a guy she met on-line, in a surprisingly unsuccessful relationship and moving back to Ohio would have changed her....nope. I was not polite to her. I charged her full price plus an adder for making me angry. We'll see if she comes back and pays and signs...or if she wants her papers back to go elsewhere...either way, she is not welcomed in my office....Lila the Giant Dog does not like her.

In anticipation of more snow (12 + inches); we in SOUTHERN PA wish to share some thoughts: Have a GREAT season --- snow AND tax !

I am overwhelmed as seeing snow storm in NY coming tonight. I have no place to put additional 6-12 inches of snow!!!!!!

JB, if she had no sales, how can you justify even reporting that as a business? Sounds like a hobby to me. She's obviously just trying to milk the system, which unfortunately is easy to do with the current Code. I'm glad it makes you mad. That is how it should make every honest taxpayer feel.

Remember one oft forgotten "bit", if you never try to restore, you have no backup to rely on. Take the backup out for a "drive" once in a while so you can be somewhat confident it will work, contains what you need, you have the tools to restore, etc. At least one backup should be off site, say on a cloud service or in a different location (not next door or in another room, but somewhere different, where you could actually work from). Multiple backups. Have only one? Hardly worth the bother as it will no doubt fail when needed. Have a rotation of many, so if the most recent fails, you can go back a short time and try another. For tax prep, I would not want to repeat more than a day's work, so I would probably have at least 14 backups in rotation, so I can go back day by day for the last two weeks. Write out and practice a disaster recovery plan. How will you get another computer/printer. Another internet connection. Another phone line, with forwarding your current number. How will you handle mail forwarding. What happens if you are unable to continue working.

Ugh, I haven't tried to boot my old XP laptop recently, but I have all my pre-2008 programs on it. And a MUCH better photo editor than on any of my newer computers. I have a non filer I'm working on, & will need to go back 6 years.

I just went into the back room to grab a file. WHEN did all those people drop off tax information? Last week, my son was sick on Monday, and school was cancelled Tuesday, Wednesday and Thursday for snow. My husband is in health care, so I had to be the 'at home' parent during those times. I worked from home, but it's not very efficient when I'm the only parent around. I lost a week last week, and now I can't believe the number of files that are 'in the queue'. Are people dropping off earlier this year? I hate feeling this behind on 12 February. Thanks for listening.

This video actually made me laugh out loud. Kitten vs gecko -

Rita, you keep changing your avatar. For a while there, I thought you were the spokesperson for an insurance company. And weren't you in Colorado before? What is with the TN address now. Is that your daughter in the picture? If so, I have a son I would like to introduce her to. But I am still afraid of you, so, maybe I shouldn't introduce my son to your daughter.......hmmmm Tom Hollister, CA

Same here! I never doubted my tax abilities, but I suffered through the test anxiety and expense to get that RTRP designation. I hope Congress either grants the authority to IRS...or at least that IRS keeps the RTRP program as voluntary

I'm with you, Marilyn! I studied hard and stressed A LOT over that stupid test. Regardless of whether that certificate means anything to anyone else, it means something to me! We can only hope that those of us who earned the "RTRP" designation will be allowed to skip whatever requirements the IRS seeks to impose in the future. Probably not, but a girl can dream.... Gina

different reasons here, but same result...overwhelmed.

I had lunch today with a friend and client at a local restaurant. At the check out were the coupons from Liberty Tax advertising the $50.00 instant check if you come in and get your taxes done. Just to make converstion, I told the girl at the register that this was a gimmick and folks probably didn't get the $50.00. her response "Oh yes they do, I got mine when I had my taxes done a couple days ago." Me- Okay but what was the prep fee? Don't they kinda burn you there? She - Oh yeah that was a little rough at $400.00. After she realized what had happened she now knows that the $50.00 she got was hers to begin with. Geez I can't believe people fall for these things.

Mrs. Preach said my hair looked good. I like HER. We are going to Wal-Mart on Feb 15, my favorite holiday: 50% off Chocolate Day.

I had my blow out last week. Had a client in the office that I was helping with bookkeeping issue. This client had an appointment and we were trying to find a discrepancy. In walks (without an appointment) another client who was extremely upset and couldn't understand why she owed this year. Went on and on about this and then suddenly saw my other client sitting working on her computer and then got all upset because we were discussing her financial info in front of someone else. Kept repeating over and over how uncomfortable she felt. Finally she left, called back later that evening and started in again. In a very calm but firm voice I told her, yes I agree it was an unfortunate situations, however I told her you came in without an appointment, took my other clients valuable time, and you were the one that brought up the subject and kept speaking about it even after becoming aware that she was sitting there. She then says well, she was working on a computer (her own personal laptop) so I assumed she was working for you, I politely asked this client, have you ever known me to have someone working with me except my dad (who by the way passed away over 5 years ago)? After that it went silent, turns out she still likes me, almost apologized to me, and came back a couple of days later in a totally different frame of mind. I sure hope that is the last one I get like that this year! Rant Over!

This one here, happens to be a preacher, kid had $17k in tuition and fees, $23k in grants and scholarships. Me: I need what you paid for books and any other class-related expenses not on this form, cause your kid made money here if the form is correct. Preach: Yeah, but he went “abroad” in January, and that “tuition” is not on here. We paid it in November. Me: Well, this box right here says that the 17k tuition includes January – March 2014 expenses. Cricket sounds. Bottom line: He is wanting to call a bunch of travel expenses tuition. I want to strangle this guy. Has a ton of Housing Allowance; FAFSA and the tax laws are very, very, good to him. (He fills out his own FAFSA, I don't even know if HA goes on it, so don't rail on me about it.) I looked at him and said, “You know, we are talking about this like it’s a bad thing that your kid made money to go to school, and travel to boot. This is a great problem you have here.” (Yes, I told him to print out the details entire record of charges and payments.)

that's where all clients keep their contribution records.

I started my career as a stay at home Mom while my husband worked three jobs. (Pencil and carbon paper then). I am just so furious today....just had my first case of identity theft for the year.

Did you show her the door and give her a business card from H&R Block? I am afraid that is how I would have handled her. Please say you did not give her discounted fees.... I too, started my working career with several "degrading jobs." Dishwasher, Stockyard stall cleaner, farm hand bailing hay etc. I also have no tolerance for those "entitled" people that irresponsible parents have raised.

I thought you were saying "Oh, Rita," and since I'm only 37...

I agree with taxtrio completely. Get the letter with the appropriate language from the church. Do confirm the receipts or cancelled checks. BTW - a client stating what they have given is never considered as any type of verification or confirmation for purposes of filing a tax return.

With thanks to "Dr Eowyn" over at Fellowship of the Minds: Some guy bought a new fridge for his house. To get rid of his old fridge, he put it in his front yard and hung a sign on it saying: ”Free to good home. You want it, you take it.” For three days the fridge sat there without anyone looking twice. He eventually decided that people were too mistrustful of this deal. So he changed the sign to read: “Fridge for sale $50.” The next day someone stole it!

I installed a new harddrive in an old machine, reinstalled Windows XP, put it on the network to be used with ATX2004 and older, since they are not compatible with Windows7. We constantly have multi-year non-filers as well.

Mine are coming in early, probably to beat the deadline in my letter which is next month. Unfortunately, I've never seen so many missing 1099Rs in all my years of practice. Apparently the 2/17/14 deadline applies to these also. I try to get them to drop them off in my box, fax or email. I do not want to see people three or four times because I can't get a darn thing done.

My Gateway has the on button on top also. My husband built a stand to set the PC on and raise it up under the desk. My cat doesn't sneak in there. This stand also serves to keep machine up off the floor and deters the fan from sucking in dust. My cat usually sits on my desk on top of whatever paper I am trying to work on at any given time.

I agree that the test was easy and like you I was done in under an hour, BUT I didn't KNOW it would be easy when I was studying for it, thus the stress. And maybe it was so easy because I HAD studied for it. Either way, the certificate is staying on the wall.

I have one that is getting temporary alimony $12,500 per month and she cries that she can't live on it. poor baby but you know if you come from a marriage where the income was 1 mil a year then $12,500 is a big lifestyle adjustment.

You are correct. You did make an error. 1099a is NOT debt forgiveness. It is to be treated as a sale. Use the amount of the forgiven debt as the sales price and use appropriate basis. Depending upon the numbers, the taxpayer may have had a taxable gain in 2012. 1099C IS debt forgiveness and should be handled with form 982 in the year the 1099C was issued.

I also backup all my tax client files on a flash drive that I carry in my pocket at all times. 64GB holds the last 10 years no problem. On sale at Staples for $39 on Black Friday. This is in addition to the daily backup on another drive I drop off at the in-laws every morning and pickup yesterdays. Rotation...

No matter what. I am not removing my RTRP certificate from the wall. I earned it. I will keep it, worthless or not.

I don't understand the legalities here. I hope IRS appeals further. But even more I hope IRS turns to Congress, because it would make a lovely discussion. Everyone wants to strengthen the integrity of the tax system. And everyone wants to reduce government regulation.

I like that almost as much as the answers on the ceiling. You know, when you ask a question and they look up at the sky.

Ha, my kitty helper hard booted my computer & screwed up ATX. I shake out crumbs all the time from my keyboard & blow out hair. But I'd hate to see what all might be in there. She also sneaks in the office and liberates my pens.

Paper file

Thanks, Taxman, but I do tend to the computer and fans. I take her in for a spa treatment about every 6 months, before and after tax season, to the guy who built her. He does a thorough cleaning job inside the box and the hard drive. I often turn over the keyboard for those pesky crumbs but never imagined there would be so much hair.

Jack to the rescue

After speaking with my client further. The University has admitted the 1099 MISC form was generated incorrectly and has not and will not be submitted to the IRS until the February 28th deadline. Form 8919 does NOT solve this problem as the software calculates the amount entered as subject to social security and medicare tax and treats it as though these were amounts received as wages where withholding taxes were not properly withheld. The University has also stated the amount on the 1099 MISC has been included in her W-2 wages and using form 8919 would double dip the withholdings. So, I have asked my client to get a letter from the University stating the details of what has happened here in the event they accidentally transmit the 1099 MISC. I see no reason to trust that they won't transmit the form because of the mistakes already made.

With that much in the Keyboard I would be concerned if my Computer Fans might need some attending to. Just thinking.

I want licensing requirements and someone watching over preparers. I want to push out the "two weeks a year" tax preparers. The group that started this whole lawsuit thing must be in favor of fraud and incompetence. What I TOTALLY DISDAIN is the paying for having a PTIN. The costs are just a cash cow for the IRS. Maybe this judgment will eliminate the charges for renewing? I am in favor of testing to obtain a PTIN. I am in favor of testing to obtain an EFIN.

You already got the answer from Lion. If the old loan was paid off, unamortized closing costs can be deducted UNLESS the refinance was with the same lender. In either case, new closing costs can be amortized as an intangible asset (assuming the refinance had a business purpose).

>>No wonder everyone on the Drake forum is so happy and helpful!<< I have a very small practice and moving towards retirement. Every year I attend a seminar where Drake has a booth and they have worked to convert me. I should have listened sooner. Tax software is a tool for me to use to aid in my profession. When a tool is broken, you throw it away and buy a new one. I am over joyed "it broke."

I definitely agree. If this is a continuing cleaner, tell your client to hand them a W-9 and tell them they can pick up their check when they return the filled out form. If your client leaves a check in the office or mails it, leave/mail the W-9 instead with a note. Tell your client he will have to withhold, which might get your client to take this more seriously if he has no employees/payroll and would have to deal with the withholding reports himself or pay you to prepare them.

I want to add to the above - Since your client knows the rules and this cleaning person supposedly knows the rules, your client should not be writing any more checks to this person until the W-9 is received. The loss of income should be significant enough to this person to compel compliance. If the person still refuses, your client should find a legitimate cleaning service.

Me too! I'm loving the ease and speed of everything in Drake. I'm looking forward to a stress-free season. Drake has allowed me to easily upgrade and accomplish several new time and expense savings for this year. I am using the DDM to launch my new scanner to scan & save all client's documents (much faster than standing at the copier), saving all prepared returns, signature forms and workpapers there also, and the DDM sets up the file structure automatically! I am going totally paperless this year for the 1040s. It's great that the program automatically password protects the returns in a standardized fashion. I've already received data and sent returns totally electronically without having to meet with the clients too. Two other new additions for me this year are accepting payments through Paypal and my locking drop box for clients not needing or wanting a meeting to leave their documents and records for me in a secure place. No wonder everyone on the Drake forum is so happy and helpful!

Questions about how Drake works should be posted on the Drake forum where a lot more Drake users can see the question and Drake employees also read the questions and sometimes answer or post a link to an explanation.