Leaderboard

Today we had a call from a third client in less than a week who got a call from the IRS (caller ID spoofed). They are told they owe big bucks and will be arrested if they don't pay that day with a prepaid debit card. If they don't bite, next call comes from the local police dept (ID also spoofed). Last week a client had already sent her spouse to the bank to withdraw $10k before she came to see us about what could possibly be wrong with her prior returns. Today's client called about her dad who is an elderly man living on Social Security who hasn't filed in years. The newspaper had an article this weekend from a local police department that has recently fielded a dozen such calls. The emails scams are less frightening to the recipients but certainly more prevalent. I'm glad these clients contacted us before they paid up. I am really scared for how many others who didn't think to talk to us first.

Another HUGE issue with tablets is the total lack of privacy. Just about ANY app you want to install wants to track EVERYTHING on that tablet. Contacts. Location by GPS. Emails. Text messages. Phone calls (if it has that capability). Login info for any site you visit with it. EVERYTHING. I bought one for when I teach, to put my presentations on (some places it's too dark to read the notes on my Kindle). I have a couple of came-with-it games (Sudoku, jigsaw puzzles). NO contacts, or anything else computer-useful, because I have yet to find ANY way to install those without signing over my life. Which I will NOT do. If the NSA wants it, they will have to work for it.

Thanks everyone. Called the practitioner line. Client SWEARS they did not receive a "Demand For Return" notice. However, FTB says one was mailed 2/11/14 with a required response date of 3/19/14. We received the information to prepare the 2012 return on 6/18/14. The person at the FTB said the client should write a letter and prove that the client did not receive the notice. Me: Just how is he to do that? Him: Well he has to convince us to remove the penalty. Me: If you had to prove that he received it, how would you do that? Him: Uhhhhmmmmmmm We could not. Me: Most tax agencies send letters of such importance Certified. Was it sent Certified? Him: No it was sent regular First Class Mail. Me: So when my client writes the letter, what is in your system trumps what my client says, even with no proof on your part of delivery of the notice? Him: Yes, that is the case. Me: Thank You very much. You have given me the information I was looking for, and much much more. "Click" GRRRRRRRRRRRRRRRRRRRRRRRRRRR One more item... Him: Did the client know the return was late? Me: I cannot answer that question because I did not specifically ask my client. Him: But did he know the return was late? Me: Does the statute say that even without receipt of the notice, if the taxpayer "knew" the return was late, you can assess the penalty? Him: No it does not say that, but if the taxpayer knew it was late, even without a notice, he should not object to the penalty. The statue has been in place since 1996.

Your situation is not in violation of the agreement. A second place of business requires a second license. If you are meeting clients in a second location, that qualifies. The license is address specific, Just like your EFIN. Still waiting for someone to say that their rep told them they could have a second business location without purchasing a second license. I have a steak dinner on this one. Any takers??

What is the basis for the reclassification? Depending on the $$$ involved the client and you should be prepared to consult with an attorney that specializes in this area of practice. The states and the feds do exchange data on these situations. It could be costly.

Looking at the various responses to this question, I begin to think of how my life has changed with this tool. A friend who is very high-tech kept telling me it would change how I organize my life, both work and personal. So I gave in and bought my first iPad 4 years ago. At first it was a novelty - I used it occasionally to check email and look stuff up. (The original iPad didn't have a camera). Nevertheless, I began to realize how much freedom it provided, increasing my efficiency and helping me stay in touch. Eventually I came to realize just how useful it was, especially when I bought an iPad II with a camera. It also helped that data plans kept improving and at the same time wifi became more prevalent. Better and more useful apps kept coming along as people began to see the power of this technology. Today, I can get by with just my iPhone for many tasks, but I still want the iPad handy when I'm doing something that requires lots of keyboard work or a bigger screen with more detail. I think some people never get past the gaming and hobby use of their tablet. For them, a tablet is a toy or a status symbol, and that's all it will ever be. For others it's a business tool as well as a way to stay in touch with friends across town or around the world. And when I'm in India, it sure is nice to call my wife on Facebook and speak with her face-to-face on a screen big enough to actually see the other person. So I'll have to say that gaming and hobby use aside, for some of us the tablet has become an integral part of how we function on a daily basis.

This is a little different than a late filing penalty. (R&TC Code 19131), which is similar to the IRS. It is a demand for information (return) (Code 19133) and carries a flat 25% penalty. Sometimes it is called a demand penalty. Did your client receive a Filing Enforcement letter (FE)? It has been in place as long as I can remember - nothing new. Also, it can't go away as you can see, because otherwise your client would have had a refund. California FTB is onerous in many ways. They can assess an unfiled year based on income docs (same as IRS SFR). But they can also assess based on estimates. Pay mortgage interest? They multiply by four and use that as your income. $20K M.I. becomes $80K "income". Have a CA licensed profession or tradesperson, which includes just about anybody in a service profession, contractors, insurance sales people, doctors, nurses, barbers, etc. etc. They take the average earned by your trade or profession and assess based on it. From Jack from Ohio "I personally filed 2010, 2011, 2012 & 2013 for a client in CA in the last 6 months. All refunds received and not a single notice like this one." They were not under Filing Enforcement., otherwise they would have the penalty tacked on.

Funny and adorable! "If it fits, I sit." http://youtu.be/XDqUz2lG7-s

It's probably covered by state law: http://codes.ohio.gov/orc/1776.43

if he was a general partner I would think he has the right to a copy of the return. Limited partners do not. As a general partner he could probably request a copy from the irs.

If there is a partnership agreement, my client has not seen it nor signed it. He is the odd man out for many years because his deceased father did not like his wife. Both partnerships were established in 2013 after the passing of his father. No clue about TMP in the name. I could tell a lot about what his happening if he can get the 1065s. He is as honest as the day is long, and is hesitant to stir up things with his family. He is actually TOO MUCH of a nice guy in that respect. It is not in his nature to be deceitful or dishonest. He just wants to know. I created a letter for him to the tax accountant "requesting" information. We will see what that stirs up.

My ipad increases my business & personal productivity. I don't prepare tax returns on it, but it serves extra duty as my 3rd monitor,. It is handy for such tasks as checking and replying to email, looking up pubs or other research, checking forums, etc. (Matter of fact, I'm on it now even though I''m at my desk with my computer on) I don't have any games on it (other than the ones my grandkids installed for their use). When I'm shutting down the office at night, I just toss the ipad in my backpack and off we go, so I can pull it out at home or anywhere while watching tv, waiting on appointments, etc. I do have a data plan for it, so I'm not tethered to wifi, but it's quick and easy to sign onto wifi when available. Since it's an Apple product, I don't worry about viruses & malware very much. When I travel, it's convenient for using in-flight wifi in the confined space of the airplane. It works equally well here in the US and overseas (for the most part). It's also my library, Bible, music player, photo & video editor, note pad, Kindle, GPS, online banking resource, check register, and appointment book. It's also synched up to my iPhone, so there's lots of redundancy across both devices. I could do my work without it, but I could also do my work with a pencil & carbon paper. For me, the tablet provides some flexibility and seamlessness between various tasks, and even though I paid about $800 for it, I don't think it cost me a penny because of the increase productivity. Going without it would cost me real dollars. A few suggestions for anyone getting a tablet. Don't pinch pennies - get the maximum memory and don't waste money on a "wifi only" version. (Without a data plan, much of the efficiency evaporates). Buy a good case with an integral bluetooth keyboard. Typing on the screen is usually tedious, but a high-quality Zagg keyboard/case makes that problem go away while protecting the device.

I don't make choices for my clients. They tell me their occupations. I ask questions. I interview.

That may be so, but I have found that often the client will make a correction either on the organizer or verbally. It seems that nobody wants to be a "nobody" doing "nothing".; even if the answer is retired. Home Maker, Student, Self-Employed and others work well when in doubt. After all, we are working for the client, not the IRS. Often clients DO care.

I also had one I took over who liked to describe themselves as an "Administrative Assistant", but their prior tax preparer's software apparently only allowed a certain number of characters, and it did a very poor job of abbreviating the term.