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I don't guarantee any completion dates. I don't announce my cutoff date in advance in my client letter. The only thing my client letter says about extensions is that anyone with a brokerage statement can expect to go on extension - no matter when they get their info to me. Some do, while with others I feel comfortable enough with the numbers to go ahead an compete the return. But I put them all on notice as a precaution because I can't predict how flaky their brokerage will be in January of any given year. I set my cutoff date based on how the tax season is progressing. In some cases it is as late as March 20, in other cases it is March 15 or even March 10 Most who get all their info to me before my cutoff date get their returns completed, but in some cases I've doubled back and told some of them we need to extend. Some people whose habits I know get extended well before my cutoff date, because I know they won't have everything to me in time - may as well deal with it at the outset and keep them & me relaxed. I filed my first one this year on March 4. Everyone whose info comes in after the cutoff date automatically goes on extension. By doing that I'm usually very productive in the weeks running up to Apr 15 because I'm not making frantic calls pleading with them to let me extend their return as the date looms. Having the extensions in place allows me to actually keep working, and many of the extended returns are finished by or before Apr 15. (No harm, no foul for an extension which was filed unnecessarily). I don't do anything on the actual date of Apr 15 except review extensions & go home early. (Sometimes I'll prepare one or two just to amuse myself, but that's unpredictable and irrelevant) April 15 is an artificial date which people impose upon themselves because they don't understand how flexible the rules really are. For them, the Apr 15 song & dance is some sort of silly game they like to play, and they want their tax preparer to play it with them. Maybe it makes them feel special and makes the preparer feel especially needed. I'm moving toward retirement and some things I just don't give a hoot about. Clients who don't plan ahead just aren't my problem. This is just how I operate - your mileage may vary if you try it. One thing I have learned over the years is that many clients are kind and considerate, but many more of them will work you till all hours of the day & night and will create all sorts of anxiety if you let them They don't intend to drive you to an early grave or stress-related illness, but that's what they will do if you allow them. So at some point each tax preparer must decide whether they are going to run their practice or are they going to let their clients dictate how they operate. I've found it's much easier on the blood pressure to run my practice myself. For those clients who don't like how I operate, they can find some stressed out, sleep deprived martyr down the street - there seem to be plenty of them.

Email exchange with a client today: Me: "You have a 1099-R showing an early withdrawal of $35K from your 401(k) because you left your employer and didn't repay it. You're going to owe about $10K-$12K of penalty plus state & Federal tax." Client: "Yes, I was expecting that. But they withheld some tax on the withdrawal so it won't hit me that hard." Me: "No, they didn't withhold any tax. The amount on the 1099-R is only the loan balance." Client: "OK, but I still saved money since I borrowed less to buy my house. I would have paid more in interest on the home loan." ======================= I'm still pondering my reply. So far, I have come up with three: 1) Huh? 2) Well, you're losing the tax free accumulation, your mortgage rate is 4% APR and this is over 30%-- oh never mind... 3) Only if your mortgage lender is run by a couple of guys named Vinnie and Guido... Any other suggestions?

1) You should file a lawsuit against your high school math teacher. 2) I'm glad you borrowed less to buy your house. More equity to secure the 2nd mortgage you're going to need to pay the tax on the withdrawal. 3) I charge a 3% fee for completing form 5329 for early withdrawals on 401(k) plans. I knew you would be pleased, since it's clear from the calculations you've already done that I'm a better deal than the IRS, Mortgage Company, OR 401(k) Plan Investments!

Because you certainly don't want to deal with Fake-tors!

"Bring me all the expenses and items you mentioned. I will account for them appropriately on your tax return." it is a line that is accepted 99.99% of the time. And it is totally truthful.

I know exactly what you are saying. And I think most preparers in my town feel this way, too. For that reason, when I say to that person coming in the door on April 3, "Hey, I doubt I can get your return done, but I'll get an extension for you and do it in the order it was received," they look at me, and say, "Ok, no problem." No kidding. I had one client four or five years ago who didn't like that. They took their return to HRB. Came back to me the next year and have been with me ever since. They are late as usual. They will get an extension as usual. I won't stress about them one bit. There is something pretty great about NOT letting a client run your life.

Or Faux-tors either.

My letter says I will finish by 4/15 IF and ONLY IF I have every single piece of required information in-house by 3/20. No one EVER brings me every piece the first time; they always forget something. But every year I get people dropping off to get their spot in the queue. I do what I can and if they kvetch I point to the letter and say"everything means everything -- you were missing A, B, C and Q -- extension." No one has yet left in a huff -- and if they did my response would be "here's your hat and don't stumble on the way out." I have easier ways to hurt myself than half-killing myself to finish returns dropped off piece-meal.

All of this is business property? Are any of the items on the fixed asset schedules? Assuming this is all business property. The fixed assets would be "sold" for the net recovered insurance payments on the 4797. It will flow from there. The inventory will be "sold" at the net insurance recovery amount as well. This will flow through the inventory lines on the return. He was not "paid" the deductible. He only received what they paid him. Lottery tickets, cash and "fine" for terminating contract should be listed as business expenses - something like "stolen merchandise and cash not reimbursed by insurance" on the tax return. Same thing with the unauthorized withdrawal from the bank. Document and get ready to show the police reports, pictures of the damages, insurance reports, bank refusal to pay the unauthorized withdrawal, and other supporting documents in a year or two to the auditor. Charge accordingly. Tom Hollister, CA

The expenses were real. Each had income of about about $500K....the expenses even more....on a C. No tax due.... One was audited and only owed about $3000. I just didn't like doing a return for 3 men who I knew were pimping...and importing Eastern European women. Their official occupation was "Entertainment entrepreneurs". I didn't about the legitimacy of their deductions....I did care about me being a part of it.

I also raise fees. BIG fee jumps. Charges for the new forms plus research or consultation or anything that fits. If the fee is large enough to cover my time, including the time I need to vent and recover afterwards, then I'm OK. And, if the big fee jump each year drives them away, then I'm OK also. But, I still file a correct return, no matter how much they pay me.

4) Why don't you use your credit card to pay the taxes? 5) How are your March Madness brackets looking? That's what matters. 6) Do you have a whole life policy? I know a financial planner. Joan is right; he doesn't want to know. "Huh?" is my first choice, too.

If it wasn't through a broker, there's usually aren't transaction costs. I wouldn't sweat it I'd the client didn't deign to give you a 1099-B.

Do check for transaction costs; I usually find these end up generating small ($10 - $30) capital losses due to broker fees.

I had a perfectly good client that is another client's daughter; then she married Mr. I know everything about taxes and how to deduct anything. Since they turned their old residence into a rental house, he declared that they have a business and that they can deduct their trips to Florida, Mexico, Wyoming and Missouri as investment expenses because they are "looking for rental properties".$4,096.76 for travel.They threw in a page from a website from some guy that wrote a book of deductions for landlords that says that you can deduct long distance travel for your rental activity, including meals, airfare, etc, "If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction." It goes on to say that IRS auditors look at this and that they need to properly document their long distance travel. They are documented by receipts that they have written "rental search" on. So I printed off IRS pubs, etc. to show them that the travel would need to be capitalized if they ever found what they were looking for. I'm glad that they are trying to do research, but they are too cheap to even buy the guy's book. Maybe it would have been more explanatory than his website trying to suck them in. I'm sure that I will be in for a fight when they come to sign, but I'm prepared to show them the door. Her daycare is suddenly showing a large loss this year now that she is married. Lord knows what crap is in there that I don't see. Thanks for listening. I just want to get this one done and off of my desk.

4) Next time you are thinking of leaving a job, give me a call. And BTW, here is your tax return. You need a payment plan with that? Rich

You would use the exercise date of 4/25/13 as the date of purchase. The grant date is the company giving the employee the chance to purchase the shares during a specified time and at a discounted price. The exercise date is the date that your client actually did make the purchase and acquired the shares.

The client just doesn't want to know how much he screwed up. Let them have their dreams!

Capital gain is calculated by subtracting the market value on date of death from the selling price. Transaction fees can also be added to market value in calculating basis. Even if sold on the date of death, next day, or whenever, you still use this formula. Capital gain on inherited stock is considered long term, even if the stock is held for less than one year by both the decedent and the heir.

In CA, as far as I've seen, the HUD taxes are never on the 1098. They aren't actually PAID by the lender, it's a credit for what the previous owner paid.

I'm weird. I really do not like extensions. My clients are gracious and allow me to put my legal and financial management business 'on hold' for about 6 weeks (unless there are emergencies or court dates, of course), and I don't like having to do returns after the 15th. I push people (have staff start calling right after corporate returns are due), and I try to get everything I can out the door. Right now I have 150 here and 49 left to come in. I have another 30 people I won't see anything from, but they will call me on 15 April to make sure I filed their extensions. I hope these 30 are the only extensions. Last year, I felt very tired toward the end of the season, and I did put a few on extension because I didn't want to make mistakes. I know that might happen again, but right now I still have energy, so I'm feeling overly ambitious.

SINCE THe hud usually breaks down the monthly or even daily amount, just see if the deduction equals what it should be for the period owned.

The occupation wasn't "pimp"....they were hosting events which required the presence of beautiful foreign women. The auditor believed it anyway.... They looked right out of a movie.....black guys in leopard pants with big gold chains...with beautiful Eastern European blondes on their arms....but they had EINs for their "entertainment promotions" endeavors! Oh...give me my foreign PhDs

Of course not, as a matter of fact they went to their friends and say that you or me didn't know about preparing taxes and that the other lady was able to get big refunds. Referrals were made to that lady because she got big refunds. It is very hard to compete against these preparers. I have one in the area and he has done fraudulent returns for years. Some people don't even speak English and they are claiming the American Opportunity Credit.

The only time I have set a deadline was when I was pregnant with my youngest as was due on April 15th. I knew if I did not set a cut off date, I would be still receiving return info on April 14th. I set a cut off date of March 20th as I could be in labor at any time. Almost all complied, had a few that went to extension. I had 1 Irate client that dropped off tax info (with my husband) on April 14th wanting to have return done and at least an extension filed and why was I not there. I had given birth that day via Csec and still in the hospital. Mind you I put this in my Annual letter that year and called all my stragglers. Unbelievable!

Box 14 is information only. If his employer included info there, great. If not, you should not enter anything onto a W-2 that is not there. (Don't know why your software doesn't let you enter what's in Box 14, though. Suggest an enhancement to them for next year.) Didn't he acquire the stocks upon exercise? 04/25/2013 Date Sold is the date he redeemed them according to the letter you quoted, but you'll have to look to that or other information from your client for the date. It sounds very much like a same day sale, or a date close to 04/25/2013. His Cost Basis is $2,226 And, his Proceeds sound like $2,226 unless there were any commissions or fees taken out.

Let us know if the IRS contacts you after you report the preparer. It is my understanding that the IRS does little when people complain, specially when it comes from another preparer. Keep in mind that these people are not that innocent as you might think. They go to these places because they know they will get money that they don't reserve. I think you are also going to report the fact that the tax preparer did the same for a number of years on these people's return, correct?

For the pimps, you must report worldwide income but cannot deduct expenses for illegal operations.

OMG KC HAS LOST IT WITH KINDERGARTEN JOKES..... SOMEBODY HELP HER!

When I give a quote I always tell them the price is subject to go up if there are any additional forms or items needed to complete their tax return. I make sure that I tell them the quote is an "estimate". Each and every "OhYeaH I forgot to mention" comes with a price increase.

Right, me too. There is never a time from the last week of January on, that I am sitting around wishing people would drop off their stuff. I'm two weeks behind from about day 1. So I don't tell people get it in by x, because it wouldn't matter if they did. And, yeah, you're not in line until I have everything. You know the guy whose casket I'm taping together from banker's boxes? He just THINKS he brought his stuff Feb 28. I'm still waiting on stuff from him on 3/22. There's no date on his folder yet. I do have the right number of bankers' boxes, however.

Q. What does the Lone Ranger say when he takes out the garbage? A. "To the dump, to the dump, to the dump dump dump." Q. Why do sea-gulls fly over the sea? A. Because if they flew over the bay they would be bagels! Q. Did you hear about the calendar thief? A. He got 12 months; they say his days are numbered Q. What kind of shorts do clouds wear? A. Thunderwear Q. Did you hear about the vampire bicycle that went round biting people's arms off? A. It was a vicious cycle.

You did not raise it enough! You still don't let them take a bogus deduction, you just confuse them with complex BS filled with lots of tax terms they don't recognize, etc. You can let them give you those 'party expenses', they just never get to the return.

I look at my stacks every year. This year with Congress' sequester delaying the start of tax season, my stacks were growing by 1 March and I considered telling everyone who came in that they were going on extension, just in case. But, I seemed to be on track, so I didn't call it then. Well, at least 20 returns, including businesses, multi-state, 1099-Bs with hundreds of pages, etc., all dropped off over the next seven days. I let it go through the weekend of the 15th and then started saying Extension. One is arguing with me as she was already on an installment plan before she came to me a couple of years ago and thinks she needs to file by 15 April (I think she can file an extension, but have been pushing to get hers done each year). I feel overwhelmed but will probably finish those I promised but still have enough extensions to keep money rolling in through 15 October. Waiting until after St. Paddy's Day was probably a mistake, though. So, next year it's probably 15 March or earlier for sure. I also don't publish my cut off in advance. If people ask, I say prior to 1 March is great and prior to 15 March with everything turned in is probably doable and after 15 March is almost always an extension. I guess when people turn their calendar page and realize it's March, they suddenly think they better drop off their tax materials. But, if K-1s or their biz expenses or corrected broker statements are still dribbling in -- I date their folders when I receive the LAST piece of information.

I always found it better, rather than firing them, to just raise their prices enough that I could smile when I saw them. After all, now that they have this "more complex" return, naturally it will cost more. They either chose to leave or, often, they actually value you more when they pay you more. Sometimes they just decide it's not worth the extra cost to try to save a bit of the taxes. All are wins.

This may not make sense, but I don't WANT everything to be in by March 15, or March 20, or April 1. I'm afraid the 60 or so extension clients WOULD get their stuff in by the cutoff, and then I'm obligated to get their returns done. Right? Well, I can't. I do all I can already; it would put me in a bind to have a bunch more stacks laying around, and if the clients met the cutoff, they would expect me to do the same. I don't want to impose that on myself. Just throwing that out there. Your mileage may vary.

One year, one of my Realtors (and they are special anyway), was all set to deduct her new houseboat as a business expense. Entertained clients on it. Printed articles for me and everything. Guess she knew I would be a problem. Her return was already an ordeal. Cause, you know, she's a Realtor (don't know why we capitalize that). I didn't have the energy to argue with her. Told her I was getting her an extension, and she needed a new preparer.