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My preference would be that the law would mandate that everyone use forms with the same layout as the IRS forms, even if they are going to print them on plain paper. I don't care about the perforations, but I could sure be more efficient if I could look in the same place every time to enter the EIN for the employer, the wages or the taxable income, etc. Instead it sometimes seems as though every company has a different format for their W2s and 1099s.

That's how a lot of us Tennessee girls get married up. Truth.

It's overrated. And I also put people who drop off on Saturday, when I am NOT open, on the bottom of the following Monday stack. Cause I can.

I get invited every year by our Insurance Broker to go skeet shooting. I have not been able to make it yet due to scheduling, but I intend to do it sometime. It is a major promotional event for our broker. I don't do their taxes, but I would have no issue classifying this event as a promotion expense. To them, it is no different than inviting clients to a Christmas party. Tom Newark, CA

I usually think a blank receipt fro Goodwill is worth about $10. Clients usually thinks it's worth about $110.00 We usually compromise on $11.00

My girls came home from a trip to Alabama (a family reunion on their dad's side) and told me they saw a store advertising beer, guns, and bridal gowns and said it sounded like the perfect all-in-one wedding planning store (for that area).

Yep, I have a few of those every year. I take their info, and sometimes I even enter it into the software if I find time. (Of course I can't do that with the ones who are "getting their stuff together", but I think they believe I can.) Then when the drop dead date arrives I tell them we need an extension. Funny how people will try to dictate our operating procedures if we allow them to do so. They will even apologize profusely, but their actions reveal they couldn't care less if we ever have any time with our families. It's up to us to manage this stuff - the client should have no influence over it. Personally, I have no interest in martyrdom.

Jack -- read Rita's sig line and I think you will know everything you need to know about this situation.

Speaking of Tennessee girls, guns, and getting married up reminds me of a story. A Tennessee girl comes home one day to find her husband sitting on the front porch weeping. She says: "That's so sweet. You remembered today is our 25th anniversary." Her husband replied: "That's exactly right. I still remember the day your daddy burst into our house, stuck that shotgun in my belly, and said 'Either you're marryin' my daughter or somebody's gonna die right now!'. I've been thnking that if I'd managed to wrestle the gun out of his hands and kill him, then allowing for time off good behavior, today I'd most likely be getting out of prison a free man."

People who call to leave messages on my *home* office machine at 8AM on *SUNDAY* get put on the bottom of NEXT week's stack. Cause I can...

I think it depends on the type of business before you can say for sure. If the business is somehow related to firearms, shooting, hunting, etc, then the range fee might be considered directly related to the business. If not, then you need to decide if the entertainment meets the "associated" test. The range would have significant distractions and would preclude conducting any sort of business meeting or discussion while actively participating on the range, but if a meeting is documented either before or after, then it might be possible to claim a deduction. Also, if some of this does turn out to be deductible, if he paid for someone else to attend the meeting that wasn't necessary to conducting of business, that portion is not deductible. Check out Pub 463 for the "directly related" and "associated" rules. The owner's personal firearms and ammo would not be deductible as an entertainment expense. That would fall under the same rules that say a person's yacht can't be deducted for such purposes. I doubt this person has any deduction. It sounds like he's scratching around for deductions of expenses that aren't really deductible.

Patrick, I was unable to get the 2014 letter to handle an amended return and print the mailing address. First time I've had that problem, and I know you've been here awhile, too. I finally gave up. Decided my client couldn't read anyway, and that's why I had to do an amended return.

For my clients that do their own bookkeeping, I have an income account and an expense account both called Ask Rita, so they can include the mystery amounts and reconcile their bank statements and then ask me where to put it.

Clear to me you need to lose him this year. He seems to be telling her something different than he's telling you, so probably stalling her so he can file first. I'd tell her you are getting conflicting messages, without any details, so only if they come in TOGETHER and discuss it can you do the return.

Why, what have you heard?

I googled out on the web and looked for any that were to the irs site. I have better luck than searching directly on the IRS site itself.

Every year. This guy comes in with his W-2 only. Me: Hey, remember you itemize? You have mortgage interest, real estate tax, church contributions? Guy: Oh. That helps? Yes, and it has helped every year for seven years now. Guy makes $95k. I don't get it...

Is there a personal story attached to this post?

The blank receipts from goodwill drive me NUTS!

Yeah, and the $230 "tithes" and blank receipt from Goodwill. I heard THAT!

I'd even say that the ammo is deductible (assuming he meets other tests) as that is an expendable (at least, what is actually *used*). Much like the clay pigeons at a skeet shoot, or the food at a Christmas party. And it's expensive!

Yes, just like they must think calling and telling me they are working on it means something.

Yes, the portion that is nonrefundable is considered prepaid medical expense, and this is an exception to the rule that says payments for medical that are substantially beyond a year aren't deductible in that year. You need to look at the policy though. Here is the section from pub 502 - Lifetime Care—Advance Payments You can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. The part of the payment you include is the amount properly allocable to medical care. The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. You can use a statement from the retirement home to prove the amount properly allocable to medical care. The statement must be based either on the home's prior experience or on information from a comparable home. Dependents with disabilities. You can include in medical expenses advance payments to a private institution for lifetime care, treatment, and training of your physically or mentally impaired child upon your death or when you become unable to provide care. The payments must be a condition for the institution's future acceptance of your child and must not be refundable. Payments for future medical care. Generally, you cannot include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. If any of the cost was paid with tax-free funds, then that portion wouldn't be deductible. Here is an article that popped up in my search that discusses the types of contracts and their levels of service. You should look at the contract to see if it covers other services besides medical such as bill paying, housekeeping, running errands, etc, that aren't medically-related. The article states that these can be deducted under sec 213, and talks about the actuarial and percentage methods of allocating when policies cover more than just medical expenses.

Lion, my advice on this one is to listen to KC!! They come in together - or nothing. It sure does sound like he's trying to pull a fast one on her.

Off the top of my head, I think I'd email him immediately and say I'm sorry but I can't prepare his return. No explanation, no excuses. I'd encourage him to find someone else as soon as possible in order to avoid his having to file an extension or settling for a rush job from a new preparer. He deserves an answer if he's pushing for an appointment and is really ready, so if you aren't willing to prepare the return he has a right to know. If he gives you any push-back, asking for reasons, etc you can then stall as long as you wish because you're busy and you've already done him the courtesy of trelling him where he stands with respect needing to find someone else. He isn't entitled to an explanation, but if he does ask for one, chances are he will admit to some of his shortcomings as a client and you cant turn those back on him if you are inclined to respond. Plus you can add others he omitted. Or you can just tell him his situation doesn't fit your client profile, etc, etc, etc.

Please ship it to the Sierra Nevada Mountains in CA. We will take it all, gladly. Our farmers will get no water from the Federal Government again this year and only 15% of their allotment from the State. If you will send us snow, we will send back cheap fruits and vegetables this spring and summer. If we don't get some water, you will be paying a metric $h1t ton more for your fruits and veggies this year, if they are available at all. Tom Newark, CA

I like to keep both unless somebody is acting like an idiot. Sometimes you can't work with both, but I really think it can be helpful to everybody if people are cooperative and act like they have some sense. Some here will say it's always impossible, and I would agree with that, but then we'd both be wrong.

We need a law that says that all tax documents (W2, 1099, etc) must have the year and form number in quarter inch tall Arial bold with the year in the upper right hand corner and the form number in upper left hand corner. We always check the year on the form because clients sometimes give us prior year forms and we have on occasion accidentally entered those forms. I'm sure you've all seen forms where the year is in a bottom border in a tiny font. Why would you hide something so important?!

Right! Is that something specific to the medical professions? I took my dog to the vet and was told she'd lost weight and was 7.12 lbs so I'm thinking the tech meant 7 1/8 lbs. Nope, the .12 was 12 oz or 3/4 lb. So I'm standing there asking the vet about the entries and she's looking at me like I'm the crazy one. It seems some techs do this and others don't so there was no consistency in the entries to tell what was really going on with the weight because some entries were 7.50 lbs. That was enough to aggravate this bean counter!

I'd like to see uniform sizes that are readable, plus NO DECIMALS ALLOWED, ALL NUMBERS ROUNDED. That would avoid a lot of errors on both ends.

You can pro-actively get an IRS-issued 5-digit PIN to prevent someone from using your ssn to file a fraudulent return. Some folks on another tax board are doing this for their clients; I just did it for my family. If you know the ssn's it takes about 10 seconds including the time to print (or save as pdf). http://www.irs.gov/Individuals/Electronic-Filing-PIN-Request

http://www.irs.gov/privacy/article/0,,id=249802,00.html This is the best information page for people who have been affected.

Thanks, Judy. I tried several search terms, particularly Identity Verification Service, and got squat. I never thought to look in the Newsroom! Anyway, that number is great. I will email them. This is a first for me in over 20 years practice. Guess my (client's) luck finally ran out!

Rita, just have to tell you how much I love your posts! Your humor always brightens my day!

I have. Looked at three years for a new client and found the preparer didn't give her credit for property taxes paid in CT for two years. $1,000 back. She's my client now. Conversely, for DIYers, I tend to find they misunderstood the law or their software and computed too small a tax liability. I explain it to them. They seldom accept my offer to amend. They are not my clients now.

Sounds like it wasn't less than 3 months.

I rather have your client than the ones that makes 17K and brings a bunch of receipts from CVS and Rite Aid. This reminded me about a new posting.

I'd be happy if there was just a rule on minimum font size - like there is for Section 7216 disclosures.

OK, I wrote hubby a Dear John email. (Realize he thought he sent me his tax info Friday via email (no matter how many times I tell clients to use FileShare on my website) but nothing was attached.

Ended up copying and pasting a 2013 amended return letter. I like to use the letter for the addresses where to mail. I give them pre-addressed envelopes but somehow they end up losing them. Thanks everyone.

Think ordinary and necessary. As you say, your law enforcement folks get to take a deduction because it is an ordinary and necessary business expense. Can your present guy say the same thing? If not - then no. I have one that lists his guns and ammo in his organizer under charitable contributions because he teaches proper gun handling techniques to his Sunday School class. I just chuckle and move on.

Lion: I believe the only thing we can do to protect our shelves in these situations is to be upfront with both parties. If one of you tell me something, then I am telling the other. There are no secrets here. Is that a Circ230 violation? Maybe. But the IRS is never gonna sue me, Opposing counsel WILL. Therefore, I would tell the Wife that Husband is pushing for an appointment. I would tell Husband that Wife is ready to go. And to REALLY protect myself, I would choose one or the other, and tell the other one to find someone new. Have that going on here right now. Husband is out of state, and has been for years. Can't ever seem to file on time. Last year? He filed in March. Guess what? Never asked his WIFE about that filing, made up numbers for her Schedule C, etc. As far as the Wife knew there was no filing. So we filed a MFS return for Wife. IRS says that HER return doesn't count..... Her attorney is LOVING this. Makes Husband look really bad in the local court. Choose, then move on. Rich

See pub 525 concerning recoveries of amounts included in itemized deductions in a prior year. Maybe this part will help you: Negative taxable income. If your taxable income for the prior year ( Worksheet 2 , line 10) was a negative amount, the recovery you must include in income is reduced by that amount. You have a negative taxable income for 2013 if your: Form 1040, line 42 was more than line 41, Form 1040NR, line 40 was more than line 39, or Form 1040NR-EZ, line 13 was more than line 12. At the bottom of Worksheet 2 linked to above, in reference to entering taxable income for the prior year it states: 4 If taxable income is a negative amount, enter that amount in brackets. Do not enter zero unless your taxable income is exactly zero. See Negative taxable income . Taxable income will have to be adjusted for any net operating loss carryover. For more information, see Publication 536, Net Operating Losses for Individuals, Estates, and Trusts. The NOL was created in 2013 and wasn't from a carryforward from a previous year. Because you say that the tax didn't change with or without the Schedule A, there is no tax benefit to the state tax being included in the Sch A and therefore the state refund shouldn't be taxed. I'd just delete the entry from the return and move on. Is this question coming up because ATX included the state refund when you rolled the data forward, or did your client actually receive a 1099G for the refund?

I had two of my divorcing clients come in today. When they first arrived, they both were so tense that I could almost see the daggers shooting out of their eyes when they looked at each other. The more we talked, I could see both of them became more relaxed with each passing minute. Finally, I told them that I needed to keep them both in my office for as long as I could and maybe they might not go through with the divorce. When they both instantly yelled "NO", I knew it was a lost cause. As the mom is the parent who the child will live with the majority of the time, and the court order calls for alternating claiming the child, I explained to them both that the mom will need to sign an 8332 for IRS to recognize the dad's ability to claim the child. At this point I also explained that as far as IRS is concerned, the release by her for the father to claim the child is strictly up to her whether she signs the 8332. I also told them both that if she claimed the child when it was his turn, then there was the issue of the dad being able to take her back to court to charge her with "contempt of court" and she should think twice before she would not follow what was agreed on and ultimately ordered by the court. So for the above reason alone, I'm glad I had both of them for the tax year of 2014. After 2014, if they both come back, they know their returns will be prepared according to IRS rules and regulations. Hopefully, my speech will eliminate one of their "friends" convincing them to disregard claiming their child in alternating years which will eliminate extra work for me....and also less disputes with each other as well.

KC, I agree with your sentiment 1000%. I wonder if they are going to take the same approach with tax professionals this year regarding the new regs for repairs, maintenance, materials, supplies, etc... It appears that what it boils down to with supplies such as in our office, we can't use the items we still have in our supply room at the end of 2014 (and future years) on our tax return as an expense..,,their cost can't be expensed until we actually use them. I pay approximately $300 for my presentation folders each year usually around the middle of February. Sure, I have some left from the year before, however, I buy the same amount each year. So, in the end, the cost I expense each year, except for 2014 will be $300....maybe $275 for 2014. Good grief. This borderlines on insanity! No, it IS insanity! And if I have a "temporary" repair part that I use until the "permanent" repair part comes in, I can't use the expense for the "temporary" repair part that is used on other items as well, until the item that happens to have the "temporary" part is disposed of (trashed). I'm taking these examples from articles I've research. If the authors of those articles are wrong or if I am wrong in comprehending what I read, at least there is a reason for the confusion.....for their mistake, they brush it off. If one of us makes a mistake in sorting out the regs, we are subjecting our clients to very negative consequences. The IRS made a glaring error on the 1095's....the correct totals to use should have been a piece of cake, yet because it's their error.....as you said, they are breaking the law telling taxpayers to forget about filing an amended return if they will owe additional taxes. I'm sure they will be as lenient with tax professionals and the new regs for 2014.......NOT!!!! IRS had a very simple task to perform and they failed.....we have regulations which appear to be written by a 70's group at Woodstock. They should hold themselves to the high standards they hold us to. However, that theory would be logical, and we all know that "logical" was a word that was banned by IRS many years ago. Sorry this was so long, however, it feels so good to get things off your chest! ????

SO TOTALLY AGREE WITH YOU.

In PA --- we have BIG flakes --- we call them politicians ---- Yardley, Box 5 is correct. Here is where the "other" preparer made a mistake ----- Many of the SSA-1099 state something such as you posted, in box 3. Box 3 is to explain where the Social Security money went --- to part-B, etc. and one line states that "paid by check or direct deposit" (which is lower than the box 5 number). The mistake is that the recipient actually received all of the box 5 number, while only the amount shown in box 3 was "paid by check or direct deposit". We in south central PA will send all we can of this ice and snow east to you. Have a GREAT season!

I prefer to not do both, but it always comes down to facts and circumstances. If there are no kids involved or any other "sticky" situations, I'll do it. It can be a fine line to walk when you can't even tell one person that their ex is or is not a client. I always tell them that they have to discuss that with the other. I like to get something in writing from each of them spelling out who gets what - just to know if there are potential conflicts of interest. I won't deal with the conflicts of interest!

Holy web cam, Batman. Or, Cat Woman.

I would read this and respond, but I can't find my glasses.