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But I am not sure what tax preparer training has to do with this. I don't think the problem is honest mistakes by preparers who don't know any better and can be trained to not make the mistakes. The problem is intentional FRAUD.

Dear Client, When you sell stock that is spun-off from or merged with another stock you own that was itself acquired from a spin-off, I can NOT figure out basis for you without ( a ) the date you bought the original, ( b ) the number of shares you originally bought, and ( c ) if you have sold any in the interim. If you can only narrow the purchase date down to a 6-month range because you are missing statements, I will use the *lowest* historical price during that time frame. I will charge you through the nose for this work. Instead, why don't you either track and provide your own bleeping stock basis (c'mon; you both have advanced degrees in sciences, I KNOW you can figure this out), or at LEAST do the online research on the spinoffs and mergers and give me the best source data you can? Or I can just use zero as the basis....

Yes. Send your client the following: Hello Client, Here is the link to the IRS page concerning your situation. Follow the steps on the page. Call the phone number and follow their directions. Only the person whose SS# has been compromised can speak to the IRS. http://www.irs.gov/privacy/article/0,,id=249802,00.html Your return(s) will need to be paper filed and will need to include form 14039. I will include them with the return. You will also need to send legible and readable copies of your Driver's license and Social Security Card. I have sent way too many of these this year. Both returns will need to be paper filed.

TP training has nothing to do with anything, Gail, as I'm sure you know. The IRS refuses to put PTINs on hold at the efile level when algorithmic examination amply demonstrates that certain PTINs are producing a string of questionable returns; the held PTIN would automatically cause a rejection at the efile level, and that PTIN remains on hold until some sort of phone-based procedure is followed... like calling the IRS Office of Tax Preparers and having an IRS employee simply review a randomly selected questionable filing (previously accepted be efile) and giving the preparer a Pass/Fail rating. If the preparer satisfies the IRS employee that he can justify the return, then the preparer Passes and the hold is lifted. If the preparer Fails, then the hold remains, and the preparer has to go to an IRS office and essentially appeal the hold, which is a more thorough review of a randomly selected questionable filing, or two, and if that also Fails, then the PTIN is defunct for the rest of the year. Obviously this isn't too difficult to arrange, is "fault tolerant", and it highly motivates preparers to keep their noses clean or they'll lose the PTIN for the rest of the year. Since the supply of PTINs during tax season is limited, this should be a workable system.

If you are the lucky one, you should play with them. You should say "I am sorry, I want to make payment arrangements with you, please send me the contract and I will sign it. I can afford $20 per month and bla bla bla". Tell them that your bank cancelled you bank account because you are so poor. Tell them that you clean casinos but there are not that many in your area and therefor you are not making that much money. Or you can tell them that you are the shampoo guy but all you clients are bald now and that your job is in decline. I would play with them a lot if I get a call from them.

The IRS needs to require the colleges to report on a calendar year. It makes no sense to allow them to continue to report on a school year when the tax law is on a calendar year of all the students. They make the colleges report a W2 on a calendar year for the students who work for them. They make businesses who are on a fiscal year report W2s on a calendar year. This is a simple change and would make tax compliance easier for students and the IRS. It is a no brainer in my mind. I wish the political establishment would just make some sensible laws. Tom Newark, CA

There's fraud at the preparer level, and fraud using DIY software. Each type of fraud requires a different approach to stopping it; although earlier matching of W2s can stop a lot of it.

Have a client with a CP2000 about education credits. Faxed the IRS the 1098T and the IRS says, sorry, inadequate proof. A few smarter colleges are putting transcripts on the back of the 1098T. They all need to get on board with that!

The simple answer is yes if the contribution was made before April 15 1014 or 2013 tax year.

Some of the highlights are below from a two-page article in today's Accounting Today. Notice that in the list of attendees there is no one from CCH. That's really very disappointing. "Internal Revenue Service Commissioner John Koskinen met with the heads of some of the major tax software companies, tax preparation chains, state tax commissioners and other officials in an effort to combat the growing problem of identity theft and tax fraud. The group included H&R Block president and CEO Bill Cobb; Intuit president and CEO Brad Smith; Liberty Tax Service president and CEO John Hewitt; Thomson Reuters Tax & Accounting managing director of the professional segment Jon Baron; Rhode Island Tax Administrator David Sullivan, who is also president of the Federation of Tax Administrators; Drake Tax Software CEO Phil Drake; FileYourTaxes.com CEO Timur Taluy; and Green Dot CEO Steve Streit. Representatives from the Free File Alliance and CERCA, the Council for Electronic Revenue Enhancement, were also in attendance." They agreed to form three working groups—overview, technology and information sharing—to work on issues such as taxpayer authentication, identity theft prevention and analysis." We've been concerned for years...plan to take additional steps...two-hr meeting exchanging views.... "The three working groups will build on the work that’s been done in the past by the IRS, state tax administrators and technology companies. They plan to focus on steps that can be implemented for next filing season and hope to come up with recommendations by this summer to give tax software companies and preparers time to adjust their systems." There's talk of trying to utilize direct download of W-2 data directly from software vendors as an added security measure in taxpayer identification, the IRS receiving W-2 information earlier in the season and verifying that first, and slowing down refunds or refunding money later in the year. The article goes on to talk about tax preparer training and that the IRS will be asking Congress to give IRS authority to require a minimum of training for tax preparers. It also mentions the use of debit cards for issuing refunds, and that it will be making changes so that the IRS system will differentiate between refunds issued via direct deposit to bank accounts and those issues on debit cards.

Client is a professional who must conduct face-to-face meetings and provide telephone consultations. Client broke off a front tooth and could not speak clearly (lisp and whistle sounds) so immediately had tooth replaced. Now is asking if this is a business deduction because the missing tooth created a physical barrier to him performing his profession. He believes the impediment and cosmetic appearance created embarrassment and affected his ability to do his work and his clients were put-off by the sound of his voice and his appearance. The client is really pressing me on this. If this is a "repair and maintenance" expense, must we apply the BRA test (betterment, restoration or adaptation)? Joking, but not sure exactly what to give the client to satisfy him about whether this is a Sch A and (I believe) not a Sch C deduction.

Yes, her implants were abnormally large to increase her tips and she swore she was going to have them removed when she quit working! So, if has an abnormally large implant to increase the attention he draws in face-to-face meetings....

Sparty won! Big Ten!

If you're going to report the income to stop matching when no return is due, then report it on the kid's return where there will be no increased tax liability. Don't add income to the parents' returns.

Yes, that's a perfect example of why con artists are never out of business for long.

My step-daughter received one on her answering machine and she called them back. Fortunately, she doesn't think that she gave them any information. I can't believe that as much as I preach to my family members about fraudulent calls, emails, etc., that she would be so gullible. It's been all over the news and in the papers here. She's also one that let the "Microsoft" people into her computer after being warned many times. I guess this is why there are so many scammers.

Yes, almost all of us can learn something about insurance that we did not know, since it's a whole different set of rules. Most of what I know about how insurance works I learned on here.

Most of my clients are blue collar people who are somewhat distrustful of attorneys. Then when I do convince them to see an attorney, they have a tendency to disregard what in their minds is legal mumbo jumbo and do what they wanted to in the first place. They seem to think that, "O K, I went to the attorney and paid him a lot of money, that takes care of whatever ! "Now I can go back to doing things my way"

My mom surprised me with a new gs4 tablet for my birthday last night. When I opened to oversized box low and behold they had given her a whole case of them instead of just one I got 5. and yes I plan to take the other 4 back. But what a shock.

Thanks, Rich....I agree with Ya....It was just a day when one county apparently woke up and decided to check tax prep fees...

George, Just make sure the client can document the contribution was made timely and recorded as a contribution for the 2013 tax year. We all know whose problem it will be if the contribution was't made properly. Make a copy of the documentation for your records. No documentation - no deduction. I become mean this time of year.

and this one is not that bad; but it started off with a two and a-half hour delay due to a complete power outage. And it has progressed, or regressed, if you will, to just a little while a go, a retired Priest (new client referred from my other retired Priest client (upwards in age 75 to 85), turning left into my parking lot, turned right in front of a vehicle and the other vehicle hit his. Neither was injured too badly but both vehicles will not be driven away. So as of this moment, I have a police car, an ambulance, and two wrecked vehicles and a party of eight people in my parking lot with two wreckers on the way. And I have got to get some work done. Annie - where are you? Oh there you are: Tomorrow, tomorrow, bet your bottom dollar there'll be sun. And I will get some tax returns done.

I went to work today thinking I'd finish up four returns that each had one last bit of info to be plugged in, then after lunch dig into my ever growing stack of returns I haven't touched yet. Okay, first return had brought in the missing data then but I realized I didn't have her birth date. Called and left a message but haven't heard back. Next one had faxed me the HUD for a home sale, but I never got it. Took two phone calls and 400 emails to finally get the info I needed at 8PM. Next one was a gifted home basis thing and the attorney did a great job calculating that, but again no HUD so I could add the selling expenses. Got that one after the client came home from work. And then the one whose employer finally broke out the income earned in NY from the rest of the income, but I could not get our program to do it right (Ultratax). Finally had to override, which I hate to do but everything I tried had his entire income taxed in NY (no percentage applied, just all of it regardless of whether I separated it by amount, days worked, volume). Took over an hour to give up and override. So those four returns that were supposed to be done and gone by noon took up much of the day. I probably wouldn't have felt so frustrated if I hadn't just assumed I'd knock all four in no time. Well, I had an appointment and hoped that at least I could get that one out in a timely manner. Of course not, they had RR retirement benefits. I haven't done one of those since I took basic training. Needless to say that hour appointment lasted considerably longer. And the stack just grows and grows. I am going to give up on setting goals. And tomorrow (the first day of spring) we're not going to get ATXaholics's sun but MORE SNOW. Maybe the clients will leave me alone and I too will get some tax returns done.

The policy matured and was paid out while he was still alive - age 97. The final dividend and the termination dividend were added to the cash value of 5k, he received $5509. My client took over his finances from her brother in 2013, and is now executor/trustee since all his assets were in a living trust. She doesn't know if he's been receiving the 'dividends' or not, and her brother made a bloody mess of his accounts before she took over, so we'll probably never know. however, then I got his medical expenses and there's no taxable income anyways, so I'm going to consider it a moot point. Definitely learning new stuff this year!

Linda, You can ship one to me and they will still be overjoyed that you gave them back the "3 extra that they shipped you". Just sayin'........ Tom Newark, CA

Over-worrying and under-sleeping. That's me.

Caller ID showed 703.828.0423. I didn't answer but they left a threatening message on my voice mail about suspected fraud and all sorts of dire consequences if I or my attorney didn't call back. The person had an accent (Hispanic I think), and the syntax was a little convoluted, but not enough to notice if the hearer wasn't tuned in enough to know it's fraudulent. I can see how unsuspecting people can get sucked into this scam because overall they make it a very intimidating conversation. I feel sorry for the people who answer these calls and don't know up front that it's OK to hang up on them.

Mine did. I told him that I'm a special agent with the IRS and I was having his call traced.

Go KU! (I'm from Lawrence, KS, and KU is my alma mater!) The Big 12 is Back!

$14K to each person without having to file a gift tax return.

Here is a link to the big breast case. http://www.huffingtonpost.com/julian-block/tax-court-upholds-busines_b_5292707.html The judge may have had a little female bias. In any event, the circumstances are far different than the broken tooth.

Maybe if it were a removable crown that he took off when not at work.... Or, as SFA says, breasts too big to fit in her street clothes. Maybe he needs a crown with his business logo inlaid in diamonds!

The monkey, or the pot? Rich

Cosmetic to me and most likely not deductible at all with the 10% floor.

Poor Joey!

I don't this is an expense from the normal course of business. I agree with you it is a Sch A deduction and not a C. It will be interesting to see what others have to say about this.

Just to add, your client will need to complete a police report and notify the FTC as well as the three major credit reporting agencies. One of my clients who is currently going thru this told me the IRS requires the police report with the return and form 14039 to investigate. That makes no sense. The IRS has to know who they are sending this money to or at the very least, what bank account it was deposited in. My client's SS# was used to get a 12,000.00 refund. I hope they do investigate.

I would still call the police. Some of these scum have called in fake "murder in progress" calls to terrorize people for NOT paying. Calling the cops at least makes it far LESS likely that they send the SWAT team out to your house because of the "hostage situation in progress."

I'm just glad this commissioner is going after these frauds. It's way past due.

Thanks for this post all, I learned a lot from it. Tom Newark, CA

Elrod: If your receptionist is getting those calls, that has to be a GOOD thing, right? I love those calls. I can have some fun with them, but, it can be a real source of new clients, right? I don't get that many, because folks think I will charge too much, but, by extension, clients leave, so we gotta replace them... My conversion rate on those calls in the past used to be 80-90% became clients. Now they are not concerned about what they pay. (Some are, but they have left, so we are cool...) Rich

I agree as well as long as she made the contribution for TY 2013 prior to April 15, 2014

Yes it is. One of the pitfalls of taking a loan from a 401(k).

I would add a new asset and keep depreciating the old asset. Add the cost of the teardown into the new part of the building and start it depreciating from that point, but leave the rest of the depreciation alone. Just my 2 cents. Tom Newark, CA

Everyone has to look at capital assets, materials, supplies, repairs, and partial asset dispositions, over the years. Explain the options to clients, so clients can make informed decisions about using the simplified procedure vs. Form 3115. There are a lot of courses, webinars, and publications out there to help you with the specifics of your clients' situations. Then, there are annual elections to make or not make, also.

As it turns out....I don't know where her statement came from. The "$100 bucks" probably meant he paid H&R $100. The difference between MFS and MFJ was only about $500 federal. DH had lots of withholding...so he only owed about $500. Jointly...they owed about $7500 because she had "next to nothing withheld". So...DH had been carrying her all these years.

Remember, no matter how bad your day is going, at least you're not in a fence being laughed at by a cow.

Issue Number: 2015-3 1. New on IRS.gov 2015 Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans 2015 Pub. 5196, Understanding Employer Reporting Requirements of the Health Care Law (brochure) 2015 Pub. 1167, General Rules and Specifications for Substitute Tax Forms and Schedules 2015 Pub. 505, Tax Withholding and Estimated Tax 2015 Inst. 941-SS, Instructions for Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands 2015 Form 945-A, Annual Record of Federal Tax Liability 2015 Form 943-A, Agricultural Employer's Record of Federal Tax Liability 2015 Inst. 941, Instructions for Form 941, Employer's Quarterly Federal Tax Return 2015 Form 941, Employer's Quarterly Federal Tax Return 2014 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage 2014 Form 1095-B, Health Coverage 2014 Inst. 1094-C and 1095-C, Instructions for Forms 1094-C and 1095-C 2014 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns 2014 Inst. 1094-B and 1095-B, Instructions for Forms 1094-B and 1095-B 2014 Form 1094-B, Transmittal of Health Coverage Information Returns 2014 Form 8922, Third-Party Sick Pay Recap 2015 Pub. 5200, Affordable Care Act: What employers need to know (flier)

Had to clean off the snow....A bit.! Then look what happened when the car warmed up...