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I had an attorney client in my office Friday, reminiscing about the days when he got audited all the time. Seems it all worked out fine because the preparer mistakenly set up a mobile home for 39 years, and everybody knows it's 17 years. Besides, he could have 79ed it anyway. He was communicating ok, he just didn't know what he was talking about. I just let him think he was right. They like it that way.

I totally agree! I have face time with most of my clients, but preparing the return live with them there is not worth the aggravation or the stress. I have clients I have been doing their returns since 1984 (Sorry to show my age). I have many referrals and because of my full time position elsewhere, I really am not able to take on any additional complex returns. I also do the bookkeeping for a few clients, stopped payroll because the time involved to prepare the weekly payroll, quarterly and annual reports was not worth the stress either. Then of course ADP can do it for a lot less. I love doing taxes, but the "Live Performance" not so much!!!

I used to be more casual about sending extensions for the procrastinators, but now I am reluctant to send extensions for clients who are not communicating with me. We make calls to confirm that the client wants or needs an extension before filing. The extension also keeps the statute of limitations clock running on returns that perhaps the client wants to put behind them and would prefer that the look-back window closes asap. If another preparer has completed their returns on time, then we may be out of line to make the assumption that an extension is helpful to them. I've read that we may actually be setting ourselves up for liability if we automatically file extensions because the clients assume that the past history of filing extensions for them, sets the precedent that they can assume that we are responsible for filing them always.

'> Thanks, Judy!

Julie, When it is a new client, it has to be entered. It goes on the form that is associated with the passive activity. There is a tab on the ATX Sch. E form for entering prior year passive losses. I did the over ride thing a few years ago on worksheet 1 before I figured this out. The next year, it was all screwed up because the overrides did not carry to the new year. Then I found out how to do it the right way in the software. Tom Hollister, CA

Sorry, I should have seen that you were trying to bring those carried losses onto the 8582. Yes, you enter it on the Schedule E. it is on the "loss limitations" tab. Last tab on the form. Tom Hollister, CA

I think you should just say "good riddance" and let it go. If they DO come back at the last minute, charge extra. If not, you lost the stress of dealing with an unreasonable client or clients. No way should you be expected to read minds.

Not really seeking advice here...just had to share this and I don't know anybody who could understand/appreciate this as well as the members of this forum: Returning client....Single mom (or at least WAS a single mom) with one daughter in college. IF she was still single, she would have had a refund of approx. $5,000....EIC and AOC...similar to last year. Also, due to her low one-income household, her daughter would get a sizeable Pell Grant for college (approx. $3,000). BUT....she went and got married in December 2013. Her new husband refuses to file taxes...According to my client he has never filed taxes. He has a source of income (not sure what it is or if I want to know, but I assume cash under the table. Frankly I'm surprised he's a free man...for many reasons...taxes and otherwise....dude may as well have loser stamped on his forehead. but she loves him. I'm guessing, but I don't think Mr. Loser made that much under the table....If they filed joint, refund would probably still be sizeable...AOC and likely still EIC....and daughter could get FAFSA filed. Sooo....MFS, her refund is only $600.00. She can't file the FAFSA application for daughter unless Mr. loser's taxes are filed...he will not even give her any information about his income......still...he will NOT file...based on principal he claims. So I told client that her "love" may cost her (and her daughter) approx. $7,400 (or more) this year in hopes that she can knock some sense into him. what life situation was ever improved in the long-term by tax evasion? I have filed the FAFSA many times...but always as a single parent.....does anybody know if she CAN file it without any of Mr. Loser's financial information? The refund is bad enough, but I would hate to see the daughter not be able to complete the FAFSA.....grants, loans, scholarships...all depend on FAFSA being filed. Thanks...rant over

Child age 16 at EOY. This is one of those situations where an email to the client is a very good idea. I usually just tell them that if the exact same return were filed the next year, their refund would be $1,000 lower. Then if they forget my warning and start complaining next year, I show them the email (or re-send them a copy).

I do have his name and SSN...So I can at least get hers done...at which point, I'm sure a computer somewhere will find his SSN and various agencies will start sending notices to him...That's why I say he should just go ahead and file now....the hide-and-seek game will be over....He should just put it all out there and deal with it. Easy for me to say...I know...but dang...at some point, you just gotta put on your big-boy pants.

You can lead a horse to water, but you can't fix stupid.

I don't think HOH is an option.....If married on 12/31/13 filing options are MFS or MFJ.....To be considered Separated and considered unmarried (living apart from spouse for 1/2 year or more), I think you need to be married first. I think that once you get married, the incomes of both parent and spouse are considered for Financial aid purposes....That's one of the main reasons I have been engaged but not married for the past 4 years.

I don't know the legality about filing extensions....but if the client doesn't request one...I certainly wouldn't send one. Suppose the client passed away, is somewhere and doesn't want to be found, or is not planning on filing for whatever reason. I wouldn't send anything without permission. One phone call...one e-mail......no response.......and assume they've moved on.

Agreed....If its going to default to something, it should default to e-filed...especially if the associated EF INFO forms are included in the return

That just comes down to crazy rules the unions have gotten put in place for qualifying for disability. Remember the case about the cop who got full disability because he stapled his finger? http://www.nbcnewyork.com/news/local/New-Jersey-Transit-Police-Officer-Disability-Lifetime-Pension-Shooting-Gun-Facebook-Video-235336831.html http://www.upi.com/Top_News/US/2013/12/12/Police-officer-staples-finger-gets-lifetime-disability-study-finds/UPI-65141386875426/

WOW! On disability retirement and deployed to Afghanistan.

This sounds like an insurance policy the taxpayer owned and he surrendered the value of the policy thus receiving a check for said surrender value. Not knowing what the policy was or how it was funded makes it difficult to answer. However, if this was a life insurance policy and the premium paid with post tax funds then it is not taxable. If there were any other type of policy/annuity etc that was surrendered that earned interest then the interest would be taxable. I kind a doubt this is interest but then again, can't be sure. Ask your client some additional questions as to why he placed this stub with the rest of his tax documents.

KC is correct. Add the PA return to the client's return and then you will have to exclude the items that aren't taxable in PA. Assbackwards PA is! I'm thankful that DE is one of the states that piggybacks the federal laws for depreciation.

It would, but a lot of these plans are set up to send $$ directly to schools or to owners, not beneficiaries. So if some of the funds are for books... there you have it. Also, I've heard tell of requests to pay schools that have NOT been answered in timely fashion. If the parent requests the money sent to them, there is at least a binary answer: they received the check, or not. None of this bursar's office says no - fund says yes and in the meantime the student can't register for classes! So I understand why parents may want funds sent to them.

Sadly, I have gotten used to altering each and every return. Personally, I am not a fan of creating the e-file (as jshtax suggests) as I do not like to have any returns show up in my e-file manager that are not ready to be e-filed.

Yes, they can transfer their interest in as a capital investment, But for your CYA you should advise them to have a lawyer draw up the agreement between them and set up the holding company. Legal Zoom is not a good idea for this sort of thing, because if they run into problems they need an agreement that protects all of them fairly. An attorney will take that all into consideration, and if not, they blame him, not you.

If the K1 reports UBTI, and if the amount for all K-1's happens to exceed $1,000, then the IRA might have some Form 990 reporting to do.

Do you mean that the taxpayer's IRA invested in a partnership, and the K-1 was issued to the IRA as the owner? If that is the case, then you don't report that anywhere. It is no different than any other investment that the IRA makes.

Cathy...it's an invoice they can't refuse! ;-)

Why would anyone ever beat a dead horse?....and for God's sake, why would anyone expect to receive a donations statement for doing so?

no, I wish my kids were that well trained.

i was wondering who took Mrs. Jones from me, good luck with her.

Me, too! Hahahaha "Close your eyes slash look up."

I absolutely WILL NOT prepare a return while the client is present. They never stop talking, it is too hard to concentrate and too easy to miss something. On the other hand, I give them as much face to face time as they want. I want to know about them and they want to know about me. They come here to see me, not some gal in the back room plugging in numbers; or even my personal assistant. I know that many of you disagree with me, but this is just the way that I choose to run my business and it just grows and grows; all by word of mouth. As KC said, you learn eventually which ones to fire.

IF, and that is my IF, I wasn't meeting/talking with the clients, I wouldn't be doing this job. And my clients appreciate the "face time". I don't like to be locked in the back office, processing the paper.... that is NO FUN. Rich

I wish we rode together! With TJ, too, of course.

RitaB...of course it was....as your posts always are....I'll give you love any day! ....I'm still sleeping in the doghouse tonight aren't I?

Sharks are killers too, and they like to swim as well......hmmmmmm I'm not saying nothin'....I'm just saying. Tom Hollister, CA

It's always one, isn't it? This past week I've had one client that has been a total pain by calling every. single. morning. First it was the son with questions on ACA related to their corporation, then look something up in his records that I currently have (that couldn't wait a day, seriously?!), then dad calls because he's buying a new house/then he isn't/then he is and banker needs info, then banker calls twice and emails, then their company had chargebacks on credit cards, then it was dad signing up for Medicare and not on social security so they are getting billed, then a second bill because they are high income and have to pay the additional medicare. Today was the first morning no one from that family called!