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There has been a lot of discussion about ACA, but there is barely any mention of the exemptions, either here or in the IRS info. In order to properly fill in form 8965, an ECN (Exemption Certified Number) is required. To obtain this number, one of 7 different application forms -depending on category - has to be filed with the Health Insurance Marketplace in London, KY. They say that the response takes 10 to 14 days - assuming that the application is complete. One application form - Unable to Afford Coverage - is about seven pages and requires much of the same information as a 433A. Documentation is also required. If a client wants to claim an exemption, this will delay preparation of the return 2 or more weeks.

30. "Since I had my baby on January 01/07/15, I can use the "10-day grace period" rule and claim her as being born in 2014 on my taxes this year"

26. We didn't make any money. Just enough to pay our bills is all. (Yes, I heard this one from a business owner whose "bills" included Hummer, BMW, boat, food, utility, and mortgage payments. They had a rude awakening. Oh, and don't sign up for SS at age 62 when you make 100k.)

31. I am paying child support, can I claim my children if they live with the mother? Do I get any credit for all that money I am paying? I usually say "no, because that money is not for your children, it is for Carmelo" I am going to start using another phrase "No because you are not biological father of those children". It really pisses me off because even the hair stylist tells them that child support is not deductible and yet they still ask you that question.

29. How come I have to pay taxes, the rich don't pay any. How can I get a tax shelter like they do?

No two businesses are alike. Being a sole practitioner, as many of us are, changes the playing field. We need to make decisions based on our own feelings as opposed to the "corporate rules". I have only ever fired one client and it was a difficult decision to make. It was difficult because it was a relative of a close relative. However, once I made the decision and followed through, the relief was, and still is, tremendous. The time I wasted on that one client has been well filled by several other respectful and good clients. In the case of non-payers; they get one chance. If they don't pay, they don't get tax prep the following year. The few times that has happened; they were ready and willing to pay up in full rather than have to find another tax preparer. Generally, they will pay for the prior year and prepay for the current year. None of these situations are going to make or break me. I get to play by MY rules; right or wrong. And so does Margaret.

Or, "How should I fill out my W-2?" Yeah, they mean W-4, and you don't even prepare their taxes. They are too smart for that. Do it themselves. Chased you out the door of church cause you need quick questions on Sunday, too.

Yeah, and the question is always something like, "How do I do payroll?" Quick *question* but a three-week answer for the SHORT version!

23. I can't afford to have a CPA do my taxes. I'll go to Jackson Hewitt or H&R Block and save a lot of money to get my taxes done.

22. It must be nice to only work from January through April.

1. I filed an extension, so I don't need to pay anything now. 2. I had a big loss in the stock market, so I won't owe any taxes. 3. I got paid in cash, so I don't need to report it. 4. I'm too young to pay taxes. 5. Income earned outside the U S isn't taxable. 6. Tax Preparers just fill out forms that you can do yourself. Since a number of my clients are S Corporations and their owners, my favorite is, " I didn't take any distributions so I don't owe any taxes." Please feel free to add to the list.

Ironically, they don't ask to claim Carmelo but they get red when I mention him.

If the baby daddy find out he is also supporting Carmelo, he is going to want to put him as a dependent to.

Only AFTER taking a proper and reasonable salary on a W-2, with withholdings. This also includes unemployment taxes and workers compensation. Best to stay as a partnership.

Disregard...I see that because they filed as an llc, they MUST file 1065 and K-1s

25. You must like math.

These two I actually heard already this year: My friend told me that if I put a magnetic sign on my car, I can deduct ALL of my mileage because I am constantly advertising everywhere I go. My friend told me that if I go to Virginia and do a show (Pampered Chef), I can deduct the cost of the entire trip. (from Wisconsin) I asked her if she just happened to have some friends or relatives in Virginia that she was going to visit. You all know that the answer was "Well, yes!"

24. But the realtor told me I can deduct all my closing costs. (I'd love to lock all those realtors in a room and not let them out until they get it.)

Are you a CPA? No, I am not (but I have several clients who are). If you really need a CPA, feel free to keep on looking. I just have one quick question My taxes are really easy this year

21. So long as my cousin does not claim her kids, I can. Somebody has to claim them. Tom Newark, CA

15. But all the money in my 401(k) was money I put in - why should I have to pay taxes on it to get it out? 16. Just put down the same mileage as last year. 17. But the guy I work with makes the same thing I do and he gets a big refund.

Yeah, I'm pretty sure the Affordable Care Act is going to kill us all anyway. Which is ironic when you think about it...

14. I left all the dividends in my brokerage account so I never received that income.

OMG! Every one of us has heard them all..............and more! Wait until they come in this year with all their knowledge about ACA.

13. I didn't sell the mutual fund and didn't get the money. All I did was transfer the money from one mutual fund to another, so I don't have to report that.

10) I'm too old to pay taxes. 11) SS is not taxable, you don't need that form. (Uh, it's on a form... and hey, look - a worksheet on the back.) 12) Just put down the standard amount for donations.

Totally agree with this. There are old bats that I choose to treat "fluffily," because, oh dear God, they need it. They are not running over you if you lay down in front of the bus. It's more like a rough massage. And no skid marks. Many times I benefit when they send family. Or bring me a nice jar of apple butter and a hug cause, let's face it, they are bats, and nobody else pays attention to them. Other times I just get a rough massage. Run your business the way you see fit.

Margaret: I think your letter was very thoughtful and professional. I have clients to whom I'd write a letter like that if necessary, but I also have clients to whom I'd simply say "Get Lost!" if that's what was required to make my point. A professional practice is not a cookie-cutter enterprise where everyone is treated exactly alike. The essence of good business practice is knowing when to make distinctions, and a qualified business manager understands this nuance . I trust your judgement that this was the way you needed to handle this situation. Nice job.

Jack, I guess I am just cushier and nicer than you. I purposely included the "fluff" for this client but not for all. You don't know the entire back story and I won't bore all here with it. I do not expect full payment but I do expect to continue to see her in social situations. It will not be difficult to sever this client relationship from my end if she doesn't from her choice sooner. Thanks again for your input. I thought long and hard about this as well as rereading the many thoughtful responses above. In the end, we each must act according to our own understanding and needs. I did so. You very well would have handled this in another matter if you had ever even gotten to this stage with a client - which I doubt. I am satisfied and will be with whatever the outcome. I don't think I burned any bridges or created an enemy, just lost a client and can live with that.

Interesting personal development over tha past few days while I was reading and responding to this thread. I had a client who came on board about 3 years ago whom I was reluctant to take on from the start, but social circumstances & church connections simply did not permit me to say "No". (Long story - we all have them). Last week, a couple of days after I sent out my client letter, this client called to let me know they were changing preparers. I happily didn't ask the reason and just told them to let me know if the new preparer has any questions about the prior 3 years. I strongly suspect the reason was that each year I had insisted on filing extensions (because their situation isn't simple and I don't want to fool with it before Apr 15.) I had emphasized in this year's client letter a blanket statement that even more, and longer, extensions might be necessaary, especially due to continuing late/revised brokerage statements and potential ACA issues. Lessons learned: 1) Adopt a strict extension policy and let the clients know up front they cannot control your time. 2) More importantly, learn to say "NO" at the outset, regardlesss of the exterrnal pressures. I have #1 perfected, but unfortunately still working on #2 even at my age & proximity to retirement.

This year will certainly be difficult for all of us, but after we digest the new forms and rules and taxpayers realize their responsibilities things should go much smoother. I do some returns for residents of Massachusetts, which has had mandatory health insurance for years. The insurer gives them a statement with a very long number that shows how many months they had creditable insurance. You pop the number in and that's the end of it. It's more complicated if they didn't have insurance all year, but the software handles it well. The federal forms will be harder because of the exceptions to the penalty, advance credits, etc. It's up to the clients to gather this info, so we just have to wait for them to produce it. Those people who have affordable insurance are the ones wishing the death of the ACA. Those whose employers don't offer insurance or who have pre-existing conditions, diabetes, mental health issues, weight problems, hypertension, and a host of common problems think the act is a Godsend. My own child had surgery to realign a bone a few months before going off my Cobra. Nothing like cancer or knee replacement, just an alignment. Everything went well but insurers don't want to touch anyone who had surgery within the past couple of years. Ended up with very expensive insurance that didn't cover anything (not even a flu shot!). Thanks to the ACA he now pays half as much for decent insurance with a reasonable deductible.