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I am sooooo tired of telling clients they owe IRS because they took big withdrawals from their 401k...and listening to them complain with shock and sadness. Yes, they did hold out Fed tax, but that was barely enough and did not cover the 10% penalty. God forbid they consult their tax advisor prior to getting that cash in-hand.

"but it was a loan......".........yeah - but you didn't pay it back........... "but why should i have to pay tax on my own money....." yep

I'd support a law that requires a minimum 25% federal w/h from early retirement distributions unless the taxpayer can certify to the trustee that they qualify for one of the exceptions. I had a client who took early distributions out of a SIMPLE within the 2 year period and got hit with the 25% penalty. It was my ex-wife's new husband so I feigned commiseration.

Dear Client, it is not necessary to continue to ring the office doorbell every 10 seconds. I actually heard it, because it is very loud and rings on both floors of my house. I am sorry it I don't hurdle my huge desk, hang up the phone or get out of the bathroom in enough time to get to the door immediately. The closer it gets to April 15, the more little things tick me off.

One of the funniest stories I ever heard - an accountant friend recommended client take pictures of donated items. Client came in the following year with pictures of seven black garbage bags.

My favorite was the woman who donated a skirt to the local Goodwill, then a week later needed a skirt for an event we were going to and couldn't find one she liked, so she went back to Goodwill and bought her skirt back. I told her it would have been less trouble to just send Goodwill a check.

Rita, does she have relatives I could fix up with my clients? Maybe we could organize a dating service on the side.

Try to read the fine print on the bottom of that commercial. Minimum of $75 charge. Love the way they sneak that in the fine print for about 2 seconds of the commercial. Tom Newark, CA

Dear New Favorite Client, Wowzers, thank you for marrying my least organized, PITA client and whipping the paperwork into shape. It is a thing of beauty, and I hope to God I'm not dreaming. You have changed my life. Remember, it's till death do you part. Don't wake up, don't wake up, don't wake up...

Dear Client- Last year, as you walked out of my apt....you said you were not coming back to me "this year" because I raised your fee for an itemized return/estimated vouchers to $125. Your income was about $100,000...and you are 85 and single. You live in an SRO. You have no expenses. This is NYC you know....nobody but an idiot would let you sit here for an hour...and charge you so little. So...I decided to drop you. Anyway...you just called me. Before you could say another word...I told you "I retired. I'm not doing tax returns". Then you told me about a company (it's H&R) that will do your return for half the price of last year. Were you going to ask me to do your return for half of $125? I'm glad I don't have to find out.

They get away with it because somewhere in the paperwork they give them is a disclaimer that actually tells the participant to "consult his or her tax adviser." But do they ever do that? Once in a very long while.... My brother-in-law complained yesterday because I told him how to set up his withholding FIVE years ago, and two jobs ago, and did not tell him that he should change it until this year he owes on federal. Not that he ever consulted me when he changed jobs and completed new W4s; I should have just told him every year... My back hurts.

What's really embarrassing is for the client to recognize the jacket you're wearing as one he donated. {I still have the jacket, but the client's son is now a CPA so I lost the client.}

"They said they already withheld THE taxes." Those HR people that tell clients that should be publicly shamed and lose their jobs. Yet they get away scot-free. If we give advice like that, we get penalties.

Tough love! More of us need to come to the way you swing your club of love. :)

Well, she brought her stuff in this morning and apologized. Looks like I will be doing her tax return for 12 years after all. Also said she was on her way to a job interview. I might cry. Nah, that's the coffee wearing off. And where's my Cadbury mini eggs???

We just had a client who was told by her large-financial-institution that her 401k distribution was covered under the "financial hardship" wavier for taxes. And yet, the 1099-R arrives and it (1) has federal taxes withheld, and (2) is code "1". So the client insists that we can "do something" about that.

Yeah, and it gets so old being handed that form: "They held out the tax already." For one thing, they don't know what the tax is. For another, why are you paying me to do your tax return if you don't think I can read a 1099-R?

Funny how highly some clients value their junk. Every now and then I'll ask one if they would pay that much for the items they describe if they saw it in a thrift shop. One (former client) gave me an especially revealing answer - they don't visit thift shops to buy, but the people who do would gladly pay that. Translation after taking into account their demeanor and overall snooty attitude - "It's beneath my dignity to buy it used, but at that price it's a bargain for the riff-raff."

$300 single, $600 joint.

If you don't have the 1116 in the return, entering the foreign tax from the 1099-div or K-1 will automatically populate the 1040 if under the $300 or so exception to filing the 1116. If the 1116 is in the return, you have to add all the other infor, including separating out the foreign Divs from the domestic.

Aren't the values printed on your ceiling? That's where my clients seem to look for them.

TP has a rental for many years. Fully depreciated under ACRS (remember that one). Has some improvements (new roof, new flooring) still on the depreciation schedule. Spouse passed away. Now I need to step up the basis. I have the new FMV of the whole home, but I am not sure how to put the difference in. I think I should add another line and call it "DOD Stepped Up Basis" and start depreciating it for another 27.5 years from the DOD. Is this the correct way to do it? Thanks Tom Newark, CA

Judy, I just had a client try to get me to put the insurance on the partnership return as a deduction when I had it as non-deductible. I wanted to make sure I had it right. I do. This is just my sounding board when I double think myself into thinking that I might be thinking something that I thought I know. Thanks Tom Newark, CA

Yes, that is what I would do. If you want a cite, I believe it's Reg. §1.1250-3(b )(2)

She is pretty honest - I think she actually values every thing at about $1 per piece (or zero if it is not in great shape), and wound up paying $7 for the skirt.

Aaaawwww!!!!!!!!! Are you sure that is not the Cadbury mini eggs talking?

Ah the youth of today, how do they survive in this world with a limited vocabulary? TP's 21yr old dependent responses to my questions: TP said you had health insurance on your own? ahuh Did you get the insurance through the marketplace? I don't know How much did you pay out of your pocket? I don't know Are you sure you had health insurance because it doesn't seem you did? nah, I did.

Feigning commiseration is underrated. Good for you.

Eh, let's not make any exceptions, that way they don't call us to research exceptions.

Then there are those who take multiple withdrawals and the company issues separate 1099Rs for each withdrawal (at the time of each withdrawal!). But the client only brings you one 1099R. How would you know? I caught one because the client included the account statement which showed total withdrawals for the year and it didn't match the 1099R. After asking the client, I find out there are several 1099Rs.

And then they take out more from their 401(k) to pay the tax..

If long form not required, I don't even bother, just let the total go to 1040 page 2. ATX gives a cautionary warning but doesn't prevent the efiling, no red print warning.

Dear Client, thank you for bringing in unopened mail, from ME, when you dropped off your tax documents. No, you do not have a sales tax number yet because that was your Application for Sales Tax Number that you didn't open. Yes, I know you have been so busy. Your nails and hair look fab, BTW.

Catherine, I would include in that priority mail another invoice for time and postage. Maybe they won't pay but it will be hanging around to send again in a few months or add to next year's balance due.

Dear Client - We give you a complete copy of your return every year. And for the past 15 years i have been here at this location, i have forked over copy after extra copy of returns for clients. But since this is the FIFTH TIME you, dear loser, are asking for another copy, you are going to pay for that time, that paper, and that ink!

The corrected forms are beginning to be available by the taxpayer logging in to the Marketplace and checking the "messages" section.

So how are we doing? I started out this season behind and nothing I have done has changed that. After yesterday with 15 coming in the door, as of this morning I had 145 returns in house to do. I figure I am busy right through the end of March. By the end of next week, we will not even be talking about completing the ones that come in from that day on. I am going to have more extensions this year than I have ever had. OR - I could get my rear end in gear and pull some back to back to back all nighters - but that just does not sound as fun as it used to.

I'm more behind than ever. Will get the corps done by Monday, I think, and one partnership that's been in the stack forever and a trust project that's months old. Then I hope to pick up speed on personal returns. But, I have a couple on extension already and will require extensions by this weekend.

I'm still behind. I will have a lot of corporate and partnership extensions along with the personal returns.. I will extend the normal ones that file an extension every year. Anything that comes in after today is a crap shoot whether they are extended or not.

I noticed this(for other states), called the IRS and waited on hold for what seemed like an entire day. Turns out this is just a processing issue, when we send the files up to the ATX system , they are all just batched and sent to the IRS and then the IRS processes them (putting the state reutrns in the state return mailbox) So, if the state return (that is sent linked) is processed before the IRS return, you will get this error. Hopefully, i said this right, the rep I had gave a bunch of jargon i did not get. So, i just started using the Held feature in ATX, it will put the state return in a status of held, so I can e-file my federal and then once I get the federal accepted ack, I can just send off the state. Since doing this I have not gotten the error again.

Hey, Gail, did she pay the price that she valued it at on her tax return?

Isn't that funny that if you have a 26 year old son who doesn't work, you support him 100%, you don't claim him on your taxes and YET you have to pay the penalty. After a second thought, it makes sense that if you have a child like that, you deserve some kind of penalty from the government.

You have to include the code for 'reported basis is wrong' and put in the wage basis as an adjustment. Don't just change the basis or you are looking at a cp2000.

At least mine have been saying "but I already paid the penalty" and figured they owed tax.

Once you get used to it, it is really fast. I can click through an entire return faster than ATX was changing pages.

I would just prepare the way he claims....If he gets questioned later...more $ for you. Be sure he signs a statement attesting to it.

It defaults to short-term on the K1 input screens. You have to enter the long-term portion. Edit: I see they've changed it a bit this year.

Dear Jack.... I always round when inputting info. But I guess I have a "bad" habit of always hitting the "." key after entering a whole number. In that case, disregard my sarcastic question to ATX. I just need to change my way of inputting.

Dear Clients.....my 6:30 PM client rescheduled for three weeks out (Yeah!!!); I have a 2:00 hair appointment and have no idea what time I will be home on this beautiful, sunny 50 degree day. A am actually going shopping for necessities and might even buy myself some flowers, Rita! Dear Hair Salon Client....(who just called) I am coming there to have my hair done, not to discuss your tax situation and the fact that I cannot read your writing and/or you are upset because you don't want anyone else in the salon hearing what we are talking about. You just blasted a hole in my beautiful day!!!!

I think your clients are on a different level than mine. I can't even get mine to realize that when your November Income Statement says you have a net profit of $100,000 it's a really bad idea to sign up for SS at age 62.