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I had one old fart complain about paying $319 to TN on her investment income. That's 6% of the amount over $2500. She said, "The Lord giveth and the Lord taketh away. I should just put the money under the mattress." Yes, I said this: "Well the Lord gave you $7817 this year, and the TN Dept of Revenue took $319 of it. Yeah, I think a mason jar in the back yard would show em both."

"But they already held out the penalty." Me: Yes, they held out 20%. Half of that covers the 10% penalty. The other half does not cover the income tax at 25%. I wish people who withdraw retirement funds early to have fun money could be hooked up to a ..... Never mind.

I've got two whose investments have been stellar this year. One sold some land at a big loss, but that didn't help with the dividend & rental income. It gave me a chance to talk about muni bonds, one of the only areas she's not invested in, but also a chance to compliment her investing prowness, and diversified portfolio. She does all the trading herself. Yes, a client that UNDERSTANDS!

I think the age requirement applies only to those without a qualifying child.

The company is deducting the amount paid to the worker. If it had been an accountable plan, the worker would turn in receipts and get reimbursed, and there would be no 1099-Misc. In this case, the worker deducts the actual expenses. And, yes, the excess after expenses is like a bonus. Pay the SE tax and carry on.

Surely the state has a way for the client to obtain the username and reset the password. Maybe you should consider getting paid up front before doing anything to help him, though.

Yes, she can open/establish the traditional IRA and contribute to it in the current year and deduct on the 2013 return, provided she does it by Apr 15.

I had one today. Of course, their world is coming to an end. "Nothing ever goes right for us", etc. They had 10% withheld from Fed and 0 from state. Well, that takes care of the Fed penalty and nothing else. This is not a good time to deal with stuff like that. My x-boss, the dentist, came in today to pick up his tax return. He told me that I work too hard. Funny, he never told me that when I worked for him; although I do know that he appreciated me. I just finally had to step away from that job. This one is more than enough for anybody.

I wish their financial advisors would tell them about the tax consequences when they pull the money out. Instead, we end up being the bad guy....

I just had to talk my step-daughter out of quitting her job and using her 401K. She wasn't even going to ask me,she had no idea that she couldn't take it out without being penalized. I told her that having a job that is making her sick is not one of the exceptions to the penalty, she needs to find another job before she quits.

Catherine, Welcome to our wonderful state full of greedy ba$t@rds who think that any connection with CA subjects you to a tax. The customer is wrong. There is no nexus (based on your statements above), as it stands right now. Future court decisions might change that. I would tell the client to call the customer, tell them there is no income tax liability, and if they insist, then stop selling to them. It appears from your comments that this is a customer, and your client is not on the FTB radar. That is good. Try to keep them that way. Tom Hollister, CA

25 to 65 with NO children. No upper age WITH children. (Something like that, I have only two EIC returns, and they're young parents.)

Found the answer. (Actually ATX tech support did) Because the property is being sold on an installment sale the line 32 amount of the gain is not reported here but on line 4 of page 1 of the 4797. If it had not been an installment sale, all of the gain would have been reported on line 32. In this case the gain is being held on form 6252 and prorated out based on the payments received each year.

send cpa a letter quoting [i forgot code] of the cpa code of professional responsibility and cc the state department of professional misconduct. Also let the cpa know that the client will hold him responsible for late filing and payment penalties.

Yeah, I love the "But, I PAID the taxes already" when they take out retirement funds.

RDNKCPA, I am sorry if it sounded offensive. I think of disability as something that keeps you from being able to work. I was only commenting that being a cop and being a soldier are both very physically demanding jobs. From just the information that he was on disability from his cop job, but serving as a soldier, I was a little perplexed as to how that could happen. I meant absolutely no offense, and I definately appreciate his service to our country. Tom Hollister, CA

Yeah, and I hope that Harley Davidson keeps him warm at night now that he is paying his tax bill with his Discover card. I really have no sympathy for people who don't consult us when they come up with these ideas. And I can't wait to see what my retired Chemist, not 59 1/2, decided to do after he DID consult me about taking money out of his IRA. He didn't like what I said, and I'll betcha he took it out anyway. They like to travel. Well, so do I, but I work instead. I'm grouchy.

I don't call them "Dear John" letters. Just sayin'...

Employer doesn't know what they're doing. It belongs on the W2, but would be WAAAYY smarter for both employer and employee to have an accountable plan. Employer may be playing "hot potato" with the 50% limit on meals deduction... or they may just be stupid.

It is his CHOICE to be a NY RESIDENT but having made that choice, he has to follow their rules. He could have chosen to become a FL resident but he did NOT change drivers license, car registration or voting registration. All credit cards, cell bills etc list NYS address. All these are indications of his INTENT. Especially keeping the NYS address. So it's not how much time he spends there that controls.

Put the corrected W-2 in their file. IRS will not issue a notice for $25 difference in tax. No amendment is needed.

Jack, it's HIS, not her, name/SSN that is rejecting, on HER return, where he is the "spouse". Yet his own return, using the same name/SSN has already been accepted.

There's a waiver exception for 'goods'. It seems to me that if your client is selling 'goods' (as opposed to services), you file form 587 and no withholding is required. F Exceptions to Withholding Withholding is not required when: • The payment is for goods, get Form 587, Nonresident Withholding Allocation Worksheet. 587 provides a place for 'goods' and indicates it is exempt from withholding. Does this work?

Rich, I feel your pain. BUT, so many users DEMAND that their programs protect them from making mistakes, so we end up with more and more 'warnings' that should not be needed, but if they let us opt out then some goofus will sue them for letting him/her screw up. That's the same reason we have so many ridiculous 'warnings' on everything we buy. "DO NOT put any person in this washer" "6PCS Precision screwdriver set not to be inserted into PENIS" "Do not eat Ipod shuffle" (found on apple's website) AND MY PERSONAL FAVORITE: "Use care when operating a car (...)" (on a bottle of dog's pills)

Cat, remember that a few years back CA tried to tax as "CA Income" the retirement benefits paid to people who had moved out of CA after retirement, based on the idea that since the pension was earned while working in CA it was still CA income forever. Of course, they lost in each court it went to, BUT THEY TRIED. So it's not impossible that they could try to collect taxes on such sales, even tho once it got to court they would lose, since the 'nexus' rules are solid. That said, I think the customer may just misunderstand those rules, so I'd suggest starting with a letter spelling out 'nexus' and why it does not exist in this case.

Pub. 590, page 8 When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. However, the time for making contributions for any year is limited

I doubt a CPA is required to give information on an account that is not in the CPA's name. Especially for an account that the "client" can easily access.

Especially if they had done it repeatedly over a couple years. And they completely forget about the State wanting their cut too...But hey it is always our fault for being the messenger.

From the IRS site, that error message says 'SpouseSSN' and the 'SpouseNameControlTxt' in the Return Header (or Line 6b 'ExemptSpouseNameControl' in the return - For 1040/1040A returns) must match the e-File database. From Thomson Reuters, here's some more: Error Reject Code R0000-503-01: Valid for 1040/A/EZ/SS(PR) - Spouse SSN and the Spouse Name Control in the Return Header must match the e-File database. Resolution This is a master file rejection, which means the SSN and name control does not match what the IRS has on their master file. Verify the spouse's SSN and name. If these are correct, then you will have to contact the IRS or file the return on paper. Note: This normally happens when the spouse just married and has not yet changed her last name with the Social Security Administration (SSA). If the spouse has multiple last names, see Publication 1346, Electronic Return File Specifications and Record Layouts for Individual Tax Returns (Tax Year 2008). Section 7, Formats for Name Controls, Name Lines and Addresses, contains examples and general rules for determining name controls for Hispanic, Asian Pacific, Native American, estates, and hyphenated names. If you are the tax professional, contact the IRS e-help Desk at 866.255.0654 for assistance. If you are the taxpayer, contact the IRS Accounts Management at 800.829.0922. If the secondary taxpayer has changed their name but has not notified the SSA, have the taxpayer contact the SSA at 800.772.1213. It may take the SSA up to 10 days to notify the IRS after they have updated their files. Afterward, an electronic return can be resubmitted. If the SSN and name control continue to reject, a paper return must be filed.

I would encourage a careful reading of Circular 230 before asserting that position....

JM: It is stupid. Somehow, in the 2011 and before versions, they figured out how to add a box: Do not show this message again? Yes/No? And you clicked yes, and each time you left after that, you didn't see that stupid message. I know this isn't 2011 anymore and I have to forget about it, but really? Rich

here in LA the La the Dept of Revenue call center for the online filing section will be of assistance if you at least know the number.

Have the prior accountant email/fax you the bill and pass it on to the client and then ask for the password. There ways to obtain the password, just call the department.

When people have to pay more tax because their investments performed well, I always tell them they should be happy. Every now and then it actually works.

I think you're missing the point of this thread..... OP says the name and number are are the same on both returns...but one keeps getting rejected.

Sorry everybody if I sound a little defensive. The disability mainly was done by the sherriff's office as a preventative measure. They didn't want him dying on duty. In the National Guard he was put on a non-deployable status and got a position training other MP soldiers. He is an excellent trainer and was specifically tapped for this mission because of his natural ability to teach. He can take the most dry and boring stuff on the planet and can keep everybody interested. He went through a battery of tests and was cleared to deploy. But I see where you are coming from.

I too apologize. It just seemed very unusual that a person could be on disability retirement and be in the military at the same time. The way you explained it certainly makes sense.

...and some of them do understand but pretend that they don't so that they can yell at someone for their stupidity besides themselves.

When we see the quality of some of the returns performed by paid preparers, it makes me a fan of regulation. I took and passed the RTRP exam - I thought it was a decent attempt to separate those who shouldn't be preparing from those who at least have a basic understanding of what it takes to prepare returns for a living, or even a side job. I am among those in support of the RTRP program.

I totally agree about the regulations! but it just annoys the HE%% out of me that the presumption is that ALL Tax Preparers are bad, all commit Identity theft. Almost putting us in the category of "Used Car Salesman"

It's not a safety mechanism when the only thing already efiled is the extension. It's just a stupid annoyance. 1/10 of a second?! You must have fast hands!

I've always done a mix. Some, the simple ones, I do with the client there so it's done, signed, paid for and transmitted in one visit. Complex returns done when alone, so I can concentrate. Often late which is my best time.

I have version 92 of the 4797 and also have the sale of a rental property. My line 32 shows $18961; which is not a happy issue for the taxpayer. My only suggestion at the moment is to check over your input sheet very carefully. Thankfully, on 3/7 in post 184094, krissi0521 outlined the steps for reporting Sale of Rental Property. I printed it at the time because I knew I had one coming up and the instructions were immensely helpful to me.

http://www.xtranormal.com/watch/7515137/ I'm not sure it works anymore. I can't get it to play. I believe Lion posted it originally. Nothing is as funny, in my mind, as your 'I'm billing time'.

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!!!

Me too. I have always done this for most of my clients. Except it seems this year I have been chasing a lot more. Some of these people make a great deal more $$$ than I ever will. Just very frustrating when I know I do not charge a lot. Then there is the expectation of a 1 to 2 day turn around when they know I work full time during the day elsewhere. The ones I have had to chase are the same ones that hound me to have the "next Day" delivery. So I feel obligated! I used to be able to do this when I only had 40 - 50 clients. At 166 and working 12 hour days elsewhere, there is no way I can turn the returns around that quickly. It is going to be very different next year, I am writing on each clients folder that I have to chase (again), "No Return Before Payment". I have had to do this only to a few in the past, next year there will be many!

I did this very thing for a new client this year. I am now hoping that I don't regret my decision. I have never done it in the past but tried to give this tax payer a break. This is what happens when your heart gets in the way of business.