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Dear Client, I understand that your mom and other friends/family members are very eager to get the partnership K-1's from the unholy mess you call "spreadsheets" from your LLC, that you only gave me last Friday. Emailing me six times in eight hours will NOT get them done any faster, especially when NONE of those responses answered the questions I asked. NO, you should NOT prepare K-1's from TurboTax for them. Unless you want to do this return yourself - and right about now, I'm thinking maybe you SHOULD. Don't push me any more today, or you WILL be doing them yourself.

Don't respond until another CP2000 is issued agreeing with or disallowing the response your client sent in. Only then respond to any open issues on the new notice.

I'm all up to date but: 1. I only do personal returns 2. I am not accepting new clients with "issues" (mostly international things..I tell them I'm phasing out of that area) 3. Absolutely dropping all pitas (and boy, does that feel good) 4. Outsourcing decent clients but who have become complex due to "high income, lots of real estate, AMT etc....in general, returns that would take up too much time and energy. I tell them that their needs would be better served with someone who had more resources, since I work alone.

Nobody special here today, but did wrap up a wowzer of a set of three family returns. 21 year old student had 7 W2G forms for Gambling winnings. She had tax withheld on all of them. Question was who got the exemption; the student or the parents. Turns out that because she was a student under 24 and had all that "investment" income, she had to file a Kiddie Tax return and was ineligible to take the refundable part of the AOC. Ended up giving the student to the parents, who were owing without her. Filed the Kiddie tax for the student and she still got a large refund as did the parents. The things we go through for our clients, but wow am I relieved and happy to wrap this package up. Tomorrow morning...........moving on. (creeping on)

Yeah - that's the sucking sound I hear every year about this time. Maybe it's me hyperventilating. or maybe it's the sound of the life being sucked out of me. Anyway - the only thing I know for sure is that it is very real............

Vacuum?!

She's a keeper - eharmony, I'd reckon. Estimated tax payments within $200 of liability and gives 25% to church. Precious lady. Wow, just wow.

Oh, thank God, and I forgot vacuuming and wasting time on here. Thank God.

OK - I do not do any of that. I do have a data entry person/secretary that has been with me for quite a few years. And my wife is the office manager. Between the two of them they answer 90% of the calls and well over 99% of the tax return in-take and check out. All of that work, the payrolls, sales tax reports, quarterlies, monthly financials, tax returns, etc, all get done by the three of us. So yes, I prepare all of the tax returns, review all of the payrolls, sales tax reports, payroll tax deposits, payroll tax reports and take the monthly write up from data entry state to published financials. So I stay busy. You are anything BUT a failure. We all do what works for us. This has worked for me for quite some time. But this year is the first in many, many, many tax seasons that I have had more than 4 1/2 hours of sleep per night and that is because I purposed, after all of the encouraging from JohnH and others, to work no more than 75 to 80 hours per week this season, instead of the 100 to 105 to which I had become accustomed. I feel more refreshed and have more energy, but the pile keeps getting bigger. But that will soon turn around and the numbers will start flowing the other way. FYI, the 145 number was 149 this morning. So the tide has not shifted yet, but it will within the next two weeks.

OMG, I thought you worked with other people and/or employees. You have 145 in the pile and you're the one chit-chatting, answering the phone, doing the dishes, doing the monthly bookkeeping, cleaning the toilet, running the copies, eating the Cadbury mini eggs, buying yourself the flowers? I feel like such a failure right now. OMG.

I work all year. Some due to extensions. Bookkeeping for two business clients, including certain days at their sites for face-to-face consulting. Used to be slow after 15 October, but no longer. I take a lot of classes then and the two bookkeeping clients continue all year and more and more really, really late clients. In fact, almost any prior year returns get postponed to after 15 October. I can earn more working all year. I don't do payroll except for one artist client that I have set-up online via People's United Bank who does all the work; I just enter it every two weeks and download her paperwork into a binder for her. And, I go to the bookkeeping clients' sites much less during this busy season. I miss that slow season, though, after 15 October that's filled up too much now.

Troubled waters here..........57 behind at a minimum and more pouring in tomorrow. Most of mine are still frantic. The Ok, whenevers; have not come in yet. Alas....

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

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...

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 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.

I don't want to think about the number of returns remaining, although I do feel like I accomplished a lot in the last couple of days. I filed my returns today too! Yay, come on big money! *claps hands and dances like a silly Wheel of Fortune contestant* Just kidding. What is this vacuum thing you all speak of?

I work year round. I would love to get rid of my payroll clients, because I hate quarterlies. I won't take anyone on that needs live payroll now. I still do bookkeeping and am so far behind until after tax season.

You keep on conveniently leaving out the things that I DO do - mow the five acres, shovel the walk, wash the windows (my office building has 30 windows (all over sized double hung) - thus, why I have my window open even now) and various other things that need done. And of course, I was just kidding, I do all those other things you mentioned. We all pitch in and do what needs to be done. None of us are above helping. The vacuuming usually falls on my shoulders, though, because there is such a big area to vacuum. And I would NEVER consider time on here as a waste of time. I always feel so much more enlightened than before I stopped by.

The client should call the IRS and follow their specific instructions. Each person may have different situations. Painting broad brush strokes of what steps to take is not a good policy for this situation. Only file form 14039 if instructed by the IRS. Contacting the credit bureaus and freezing their credit is a very effective way to stop unauthorized people from opening accounts in their name. However, this letter only indicates that the SS# has been compromised. No indication that total identity theft has happened. Our tax filing system is so very simple to fraud with just a SS#.

I work year 'round. Hired help (2x/week) in Sept and am grooming him to take over in 7-10 years. I am just *tired* of working 60 hours/week with one week off every summer. Bookkeeping, payroll (full for one client, tax forms for two others, one nanny payroll, now my own too), taxes, a tiny bit of representation work here and there. Yes, Lion is right - used to be slow after 10/15 (and in August, too) but not for the last half-dozen years.

I hate it when the TP tries to take the bull by it's horn, and then doesn't want to pay to get them out of the mess they caused.

don't forget part of the step-up gets allocated to land.

LOL....I have a couple...actually parents of a client. The clients is in her thirties...so the parents have been married a long time. They have a very long Polish last name. The first time I e-filed...and it was rejected because of the wife's name. At that time you could call e-file services and "discuss". I was assuming there was a spelling issue. The rep said the name wasn't even close. So...I called the client...and explained the issue. Since she was married 30+ years....and was very traditional....I figured maybe, at most there was a hyphen there somewhere. So, I asked her the maiden name. It was Chinese (she didn't look Asian at all). It seems she never changed her name with social security. She gets W-2s under the married name...but e-files under the maiden name. I have told her...year after year...to go to social security and clear it up...because of tentative issues.

Yeah, overkill is underrated. I'd send both. Speaking of last names, I have a couple who've been married 50 years. We discovered thru e-file that IRS still had her maiden name, and SSA had her married name. I could not believe it. Husband got it straightened out spring of 2014. Well, we think. Gonna find out when I submit the 2014 e-file. I told them I didn't think they were even married, and all this time they have been faking on all of us. They got a kick outta that.

Well, I suppose you already know that I do. All of that other "stuff" keeps those animals fed the rest of the year. My "off-season" is shaping up to be as busy, at least in the near term" as tax season is being. I am hiring someone in May to take some of the burden off of me because I am planning on working no more than 3 days per week this summer - and if I can work it out, no more than four during tax seasons from here on out.

I'm still running pretty well; I have about a week and a half turnaround now. But I am motivated that I have to be at a clients conference the weekend of April 9, so I want all of my extensions done by then. And the returns are starting to pile up...

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

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.

That has happened to me only once when I had been working a lot. I shut down the program and restarted. Sometimes I think there is too many electrons around and it needs to be refreshed - or something. That also works when I try to open a second return and get a low resources message.

If the daughter was on the IRA as a 50% beneficiary, the daughter applies to IRA custodian for her monies. [beneficiary designations trump will] If there was no other designation on the IRA besides the daughter being a 50% beneficiary, the other 50% of the IRA goes to Dad's estate. [some custodians won't release any money until they have all the paperwork.] Now the will kicks in. If the will says "50% to Daughter and 50% to Son," then Daughter get's 50% and Son would have gotten 50%, but since he is deceased, I think it would go to the son's estate. Then you would have to find out if the son had a will. If not, your state estate laws come into play. In NY, if you die without a will, first it would go to a spouse, if no spouse, it goes to child(ren), if no child(ren), then it goes to parent's, if no parents, it goes to siblings (including 1/2 siblings), if no siblings/1/2 siblings, it just keeps going until you find next of kin. A couple of thoughts. You may want to have the daughter look through all of the father's paperwork pertaining this IRA. It could be that he submitted paperwork that shows a 50/50 beneficiary designation, but the insurance company made a clerical error in processing the request and only put one child on the form. Alternatively, you can tell the IRA folks to pull all relevant paperwork relative to this IRA. Perhaps the father filled out original paperwork designating Daughter and Son as 50/50 beneficiaries but there was a clerical error at that time. Or, if he changed the beneficiary later on, the IRA custodian should have some paperwork on file for that as well. [Note RE: Beneficiary designations. You have to verify what you have on file all the time. I have seen so many instances of problems. Banks merge and paperwork gets lost. The account is old and the custodian no longer has any of the original paperwork. Etc, etc. etc. It's a real pain in the butt]. I am not a lawyer, it's based on my experience. Hope this helps. Grace

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

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.

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.

"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.

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

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?

Yes, and on the inside edge of right shoe. Left for Methodists. I don't know why.

I have a blind client that signs. You put her finger in the line, and she knows where to sign. It's pretty cool.

From what I can gather, the daughter and daughter-in-law each received 50% of the income. Then the income would flow through dad's estate reduced by his estate's attorney fees and any other allowable deductions. The income would not be taxed at the estate level if distributions were made before the estate's year end. Daughter would get a K-1 for her share. Son's estate would get a K-1 for his share. Then son's share would flow into his estate where it would again be reduced by attorney fees and any other allowable deductions. In order to maximize deductions the estate can elect accrual accounting and a short year can be used first if it helps to match income and deductions in a later 12 month period. Hope this helps.

Talk about tough love. One client came in with a 1099-R for over $130K - of which he saw not a penny. Inherited his sister's IRA (TOD; never went through estate), executor told him she needed that money to pay final medical expenses. Somehow weaseled it for money to be sent to HER, not him. He's in shock and nearly in tears. *Wants* to help his sister's final expenses; has known the executor (a lawyer!) since she was in diapers. Had to tell him that knowing someone since they were in diapers and wanting to help is NOT the same thing as hanging a sign on his back saying "Kick me in the nuts!" Told him I would NOT touch any tax papers until he had spoken with an attorney about the situation (which has every warning bell in my head clanging away). Yes, I had to be that harsh. It felt like kicking a puppy. Sheesh.

Tom, keep in mind that life insurance proceeds are subject to corp AMT if the company gross receipts are high enough for it to be subject to this tax. If they are close to being subject to the AMT and life insurance is being used to fund a buy-sell agreement, you want to make sure the company doesn't fall short of the goal because of having to possibly pay taxes on the proceeds. If it's a small enough company, this probably isn't an issue.

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.

"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

Feigning commiseration is underrated. Good for you.

VA does not require the 1099s be filed with them unless there was income tax withheld. Therefore, they will not question why they did not get a tax return from this man unless they audit the VA company he worked for. And even then, they will question the company first and it may never get kicked up the line to him.

This is all very weak, but I'll share what I found so that maybe it will help you in some way. I think that 10 years might be the key for your client. I can't find an actual reference in the code or regs (somewhere in 409A maybe?) for this statement that I found in 3 separate articles that maybe you can use as a jumping off point for your further research. What I found says: Under federal source taxation law, deferred compensation earned by an employee or former employee while a resident but paid when the individual is a nonresident, cannot be subject to that state’s income tax if: i) compensation is payable over the individual’s life or life expectancy or is paid in installments scheduled over 10 or more years; or ii) the compensation is paid under certain qualified retirement plans or “excess plans”. That quote was found in the following article that is about retirement planning when it involves deferred comp and deciding on what state to live in, and how this will affect the taxes: http://www.ebsplans.com/linked/ebs%20news%20sep%2008.pdf Found this article entitled "New York Taxes A Portion of Stock Option Gain of Nonresident Retiree" http://benefitsnotes.com/2012/12/new-york-taxes-a-portion-of-stock-option-gain-of-nonresident-retiree/ and this one from the same blog entitled "Nonresident Employee Avoids New York Taxes on Deferred Compensation Payment" http://benefitsnotes.com/2013/05/nonresident-employee-avoids-new-york-taxes-on-deferred-compensation-payment/ As I said, weak at best, but I thought I may as well share it in hopes that it will lead you to finding substantial authority for allocating this income.

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.

I had no qualms about taking COBRA payments as SEHI when I was on it. The Medicare ruling on SEHI pretty much quashed the name of the business qualification IMHO.