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One issue which continually puzzles me is the position many take regarding interest. I don't agree with the view that "they had the use of the money", which implies that the preparer has no moral obligation to pay any of the interest. I believe that is short sighted and a bit of a cop-out in the face of reality. So let's look at reality. If the client had the money in a savings account, they would have only earned about 1% at most. However, the interst is being charged at about 3-4%. So if I am truly committed to making the client whole due to my error, I should be willing to accept responsibility for at least the interest differential.that is, at a minimum I should be willing to shoulder the responsibility for 75-80% of the total interest charged.

From US News.com By Trent Hamm Sept. 23, 2014 | 9:03 a.m. EDT One of the biggest benefits of the Internet is the huge amount of information we all have available at our fingertips. Yet the biggest challenge for many of us is making sense of all that information. There are many opportunities for learning, but the information is often spread out in various places and not presented in an organized way that makes learning easy. Thankfully, several organizations – both nonprofits and businesses – have jumped into this niche and have developed online courses that draw upon this vast wealth of available knowledge. These eight free websites allow you to take educational courses in the comfort of your home, expanding your knowledge and understanding of the world at your convenience. Coursera is one of the leading providers of MOOCs – massive open online courses. Coursera offers a wide selection of college courses on a variety of subjects and includes lectures taught by university professors, discussion forums and quizzes. Some Coursera courses provide certificates of completion to recognize that you passed the class. If you enjoy learning in a structured classroom-style environment and want to do this at home, Coursera is a great place to start. [search: Find the Best 529 College Savings Plan for You.] Duolingo is a tool for learning new languages such as Spanish, French, Italian and German and provides a lesson-based structure in which you gradually learn new words and grammar. The site integrates visual, audio and written learning, so you become comfortable with the new language as a whole. Using Duolingo feels like playing a game, but after completing the full track of a language, you’ll be able to carry on a basic conversation. Khan Academy is an organized series of mini lectures and interactive problems on a variety of topics including mathematics, history, science and more. The lectures are short and share a handful of information at a time, but build on each other as you progress. If you like the idea of learning about a topic in short bursts, Khan Academy is the right resource for you. iTunes U provides integrated video and audio learning right inside the iTunes program many people use to manage their music and audio devices. The tool offers online courses with full lectures, the ability to take notes on those lectures and assignments to continue learning outside of the lecture environment. iTunes U does the best job of integrating free online learning with the iPad and iPhone, so if you’re a user of those devices, take a look at what iTunes U has to offer. MIT OpenCourseWare is a treasure trove of course material from the Massachusetts Institute of Technology; it provides lectures, lecture notes, homework assignments, sample tests and many other materials from the actual courses at MIT. MIT OpenCourseWare stands out from the pack if you’re looking to learn more about science, computer and engineering topics, as MIT is a leading university for those subjects. [Read: How to Go Back to College for Free.] EdX is similar in presentation to Coursera in that it offers full online courses with teachers, discussion boards, quizzes, and so on, but it tends to focus on (and excel at) courses in math, the sciences and engineering. Much like Coursera, it has arrangements with a number of universities – from Harvard to the University of Hong Kong – to provide material. If you like the idea of a highly structured course environment and are looking for science, math, and engineering courses, take a serious look at EdX. Codecademy is a brilliant tool for learning the basics of computer programming. Codecademy teaches you how to write the code necessary to develop interactive websites using the most useful languages – HTML, CSS, JavaScript, jQuery, Python, Ruby, and PHP – and does it within the browser using interactive tools. If you’ve ever wanted to learn how to code, Codecademy is a wonderful place to start. Livemocha, like Duolingo, is a tool for learning foreign languages, but rather than offering interactive lessons, Livemocha pairs you up with speakers of other languages so you can teach each other your native language. When you invest time in teaching someone your language by having conversations and walking them through their grammatical challenges, someone else will invest that time in you. If the idea of conversing with native speakers in order to learn a new language sounds compelling, Livemocha is perfect for your needs . [Read: 9 Free Ways to Learn Something New Every Day.] These eight resources provide only a sample of the opportunities for free online learning available to anyone with a Web browser and an Internet connection. The only thing you need to succeed is a curious mind and a willingness to learn .

I just got an e-mail from a client that had received a CP2000 about two missing W-2s from their 2013 tax return Looked up the return, checked copies of W-2s, not there. Informed client I had no copies of said w-2s and they did not appear to be on the return. It looked to me like they owed the tax. Just got a subsequent e-mail from client, I don't have W-2s but know I worked there, guess I will pay the tax, P & I. Good end to story.

When I worked for HRB, they had us staple all the client's original documents together in 1040 order to return in the folder. Then, if a claim came in, we were supposed to ask for their folder and make sure the suspect document was stapled in order with the rest or, if unassembled, had staple holes.. A document with no staple holes had to go above my pay grade. (Although, our district manager recommended ALL claims be paid, so why did he bother teaching us the HRB way and making us check the folders?!)

Not in the last 3-4 years. They are very stingy about abating penalties. He cannot get out of late payment, or underpayment penalty and interest. He should file by Oct. 15, 2014 to prevent late filing penalties.

If he filed an extension for 2013, there is no late filing penalty as long as the return is filed by Oct 15. Late filing penalties are 5%/month to a max of 25%, so worst case for your clients would be about $325 plus late payment penalty & interest, about $37, if it is 6 months late.

I believe this clarifies a recent thread about this topic: From the Journal of Accountancy: Dispositions of property get automatic accounting method change procedures September 19, 2014 The IRS on Thursday issued Rev. Proc. 2014-54, providing procedures for taxpayers to obtain automatic consent to accounting method changes involving dispositions of tangible depreciable property. The guidance outlines how taxpayers may obtain the IRS’s automatic consent to change to certain methods provided in recently finalized regulations (T.D. 9689, issued Aug. 14). The methods are provided under Regs. Sec. 1.168(i)-1 (general asset accounts); Regs. Sec. 1.168(i)-7 (accounting for modified accelerated cost recovery system (MACRS) property); and Regs. Sec. 1.168(i)-8 (dispositions of MACRS property). The revenue procedure issued Thursday revises procedures in the appendix of Rev. Proc. 2011-14 (which prescribes automatic consent procedures generally and for a wide range of specific methods), as the appendix was modified earlier this year by Rev. Proc. 2014-17. Specifically, it: Removes appendix Section 6.19 (lessor improvements abandoned at termination of lease) as obsolete; Provides that Section 6.29, regarding disposition of a building or structural component, does not apply to any demolition of a structure to which Sec. 280B (denying deductibility of demolition costs, losses, and amounts chargeable to capital account) and associated regulations apply; Allows changes regarding general asset accounts and partial dispositions of tangible depreciable assets, to be made under Regs. Secs. 1.168(i)-1 and 1.168(i)-8; Allows a late partial disposition election under Regs. Sec. 1.168(i)-8 to be treated as a change in method of accounting for a limited period; Provides additional changes from one permissible method of accounting for MACRS property to another; and Clarifies that appendix Section 10.11 (tangible property) does not apply to amounts paid or incurred for certain materials and supplies a taxpayer has elected to capitalize and depreciate. Rev. Proc. 2014-54 also adds new automatic changes to Rev. Proc. 2011-14 (as appendix Sections 6.38 through 6.40) for: Disposition of a building or structural component; Dispositions of tangible depreciable assets other than a building or its structural components; and Dispositions of tangible depreciable assets in a general asset account. Rev. Proc. 2014-54 is effective Sept. 18, 2014, with transitional rules for taxpayers with a previously filed Form 3115, Application for Change in Accounting Method, under Rev. Proc. 97-27 or 2014-17. —Paul Bonner ([email protected]) is a JofA senior editor

My position was always that the tax is on them, just as it would have been had it been on the return, Penalty and interest on me, if I made the mistake. That part bothers me, because I always ask each client if they had any unusual activities, sales, withdrawals, new dependants, etc. I guess all experienced preparers do. Assuming you did that, the client should have mentioned the IRA withdrawal. Still, either way, the tax on the withdrawal is hers. Explain that to her in a letter, with a check for the penalty and interest, and put on the front of the check, in the "For_____________" space "Payment in full". If she cashes that check, that's the end of it.