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Dear Client, That was your last straw. You have stood me up one too many times. Now I am sending Rita and Catherine out to take care of you! Good bye!

Joan, give your body a chance, it's telling you that you are not just hurting, you are also very tired. Take the time to recover, those returns will wait. Sending healing thoughts your way.

have you donated lately to this great Forum? I haven't.... but I plan to do soon while supplies last. Give me a like if you will donate this week.

Dear Client- I have a major PITA every year...and this year you get the award. The award is that I will absolutely not do your return in the future. You live in a "taxless state". You have 1 W-2. Your wife has a T-Shirt business...which is a joke. But, every year you give me a spreadsheet...as if it's a thriving enterprise. There's always a loss. I know you have an MBA from Wharton...and you know all about COGS etc. But really, she sells 5 shirts and travels 3600 miles to do this. She spent $2540 to repair a 3 year old computer. And your list goes on. But...dear client...I have warned you that this return looks ridiculous...especially because your W-2 is for $250,000. In addition...you send me the W-2 on 1/24..with the spreadsheet...but don't get back to me until 3/24. So...when you ask me questions...I really do not remember why I did what I did 2 months ago so that your return would not look frivolous. You have too many years of loses. I am not going to get fined because you're an idiot. I don't care if her business is registered with the state and you paid a fee. BTW...if you have one more critique of this return....I will refuse to file it. Otherwise....just send me my check...and find someone new next year.

I tell my clients that I will *not* rush to finish their return just to make the deadline; that I will take the time to do it right and if that means an extension then that's what it means. I've had a few clients who worried it would make them more likely to be audited - they calm down when I tell them a return that has been properly prepared does *not* increase the chances -- rather the other way around! This year, anyone who fusses will also be informed of ( a ) delays due to all the %$#@ snow, ( b ) delays getting papers *to* me because we were all too busy shoveling and recovering from shoveling, and ( c ) my unexpected mid-season dental work. Anyone who gets in a huff can go somewhere else next year.

Dear Client, You owe $584. $584. $584. Does that warrant cussing? You are an officer of the law. You need to calm down and not do your tax rage thing here in my office. Are you kidding me? $584 does not warrant that kind of response from someone in your income range. Oh, and BTW, a good portion of that $584 would represent my fee if I charged you what your return is worth. Geez! It must be getting late in the season.

Dear New Client From NY: No I do not want to buy a T-shirt from you.

Now that's a very smart husband. Recommend you keep him!

Oh, and when my husband heard whose return I was working on and the company, he brought home a chocolate fudge cake with chocolate icing. Hmm, I may have complained a little about this family before...like every month.

It's been one of those days and got this email this evening. Client - I'd like a bonus of $100K. Please figure the taxes and let me know. Me thinking - Yeah, I'd like one of those too. Would you please just adopt me? Me - Your net bonus will be $58K. You paid off the mortgage, less deductions and are limited, exemption phased out, the AMT, and lots of investment income. I receive a 2-line email from client - I'd like to clear $70K. Please call it in ASAP. His company fiscal year end is 3/31, so I DO need to call it in ASAP. Me - Raise the bonus to $112K, leave in the 2014 overpayments, withholding on the next bonus WILL have to make up the difference AND cover the taxes on all of the investment income. Total cost to company ~ $123K. That was almost fun because I feel like a poker player with this guy. I'm waiting for his next reply. His dad was the same way only more difficult. With the son I have half a chance that he'll almost understand my explanation...maybe.

And I survived my root canal but need a nap before I look at *anything* to do with taxes.

Our version of Thelma & Louise?

I will add that you can do this by looking at the top of this page and right next to the My ATX button is the Donation button. Eric keeps this board up and running year round, and has never asked us for any fee. If you think it's a valuable resource, please do click on that button and pitch in something to help cover Eric's costs and show your appreciation for his generosity.

Rita, in a community property state, if the ownership is joint, you end up with a full 100% Federal and State step up in basis on the first to die. If the stock was worth 100k and the basis was 10K, the surviving spouse steps up to 100K of basis. Tom Newark, CA

Oh my, how people are different! The latest return I just finished was for a recent widow and former coworker of mine. Her broker had her cash in all of her EE bonds in one year, and the interest on those totaled a little over $168K. Last Nov when this happened and I told her she'd owe about $45K, she very calmly said "oh well, I knew it would be a lot". She opted to wait to pay it with the return knowing there'd be no 2210 penalty due. Have I said lately how much I love some of my clients? The broker mistakenly thought he could convince her to contribute $70K into PA 529 plans for each of her 3 grandchildren. Sure he did....

My return always gets extended too. It is in a mostly done state, but if tax season is good to me, I might do a last minute IRA. before I got the employee, it was a last minute 401(k). I am feeing much better today! Watched The Voice last night, then my head cleared enough to finish the clients that were mostly done Saturday night. Then went to bed, another 9 hours of sleep (that's got to be nearly 20 hours in the last 48). Almost ready to see all the client booked for this afternoon. But I hope no one asks me any complicated questions.

I am still a member of AICPA but not the Tax Section which is where this letter is available. THAT irritates me no end as I had to cut costs, too, and that extra fee was too much. I'm sure many members do tax work and need that information just as much as, maybe more than, the section members. Yes, let's hope CNA comes through and soon!

Judy, I'm going ahead with my outside salesperson and using the de minimus election. He has a lot of expenses for supplies and office equipment. I may very well be wrong, but I'm tired of trying to figure this stuff out. I saw that the AICPA has designed a new letter to have client's sign that they were informed and allowed their tax preparer to use the simplified version and not the 3115. They are worried about law suits. I can't get it yet, because I only belong to my state society, not the AICPA anymore. I'm hoping that CNA will come out with a letter so that I can see it. I am so tired of having to study my butt off just to do what used to be a fairly straight forward return.

Yes, that's true for all of us.

Thanks the for help. I'm glad people are agreeing. I have it printed out now and ready to go. It's so much easier to answer others' questions and see the bigger picture than it is with my own clients' problem returns.

I won't do returns of I'm in a drug addled fog. Tried to look at stuff this morning, but just answered emails & quit. I couldn't even keep my head up much less my eyes open. Answered some more emails & phone calls a bit ago. Think I need some caffeine.

The husband is a non-owner employee. The way I see it they have effectively exposed his HI benefit to regular income tax while denying him the ability to dedut the premiums on Schedule A as he formally did. In other words a foulup in the front office.

Joan and Catherine:

Last night during a bill paying session, I bent over to file my utility bills in my home office folder. SPAZZ! My back has a muscle spasm. Managed to get off the floor & into my desk chair and finished the bills. Still in pain this morning, so I took a Soma to try to get my muscles to relax. Good thing I only have one appointment today and it's a delivery. I'm loopy. My hot tub has been broken for months. My bathtub is still full of feathers from a cat/bird incident. Like I get around to housecleaning during the season! Oh, and my assistant has a cold. Yesterday I just could not wake up and got near to nothing done, but the bill paying. All I want to do is sleep right now..... But it did rain a wee bit last night.

Thanks, Judy. The one I found went through 2013 so I think I'm covered. Just wasn't sure the year it began. "Bonus" - they agree!

My CPA associate would say, MAS your clients don't respect you. And I agree, it seems clients sometimes don't care.

Ahh, here's the thread. I'll get a donation. And then another will follow an hour later. I wonder "coincidence?" And then a another couple more. "Naw, someone is talking about donations on the forum" Thanks everyone Some big changes coming soon! (after things quiet down)

Done!. I consider it an investment in professional and mental peace of mind, as well as showing appreciation for all Eric does for us.

I saw that they'd come out with a letter and can't get it either. I had to cut expenses somewhere and dropped my membership with the AICPA and am also only a member of my state society now. I'm hoping to find it elsewhere too.

Get well soon, Ladies. Take good care of yourselves.

Absolutely right. You know that those impatient clients have plenty of reasons for any delays on their part. If they think you are somehow immune to all ailments just inform them otherwise.

What kind of services, Terry? Normal 'rental' activities like managing, repairing, renting, are not the sort of things that the IRS considers 'services'. I think what you have sounds like a classic 'joint venture'. If you materially participate in the daily operations of the rental properties, then the IRS will treat you like a business. Material participation requires your involvement in the management of the properties or the frequent provision of services to tenants, such as daily cleaning of apartments or changing of linens. However, if you only provide utility and trash collection services, this is a passive activity. IRC Section 7701(a)(2) provides that the term “partnership” includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a trust or estate or a corporation; and the term “partner” includes a member in such a syndicate, group, pool, joint venture, or organization. Whether a joint venture is a separate entity for federal tax purposes is a question of federal law. Treasury Regulation Section 301.7701-1 prescribes the classification of various organizations for federal tax purposes. Whether an organization is an entity separate from its owners for federal tax purposes is a matter of federal tax law and does not depend on whether the organization is recognized as an entity under local law. In addition, certain joint undertakings give rise to entities for federal tax purposes. A joint venture or other contractual arrangement may create a separate entity for federal tax purposes if the participants carry on a trade, business, financial operation, or venture and divide the profits. For example, a separate entity exists for federal tax purposes if co-owners of an apartment building lease space and in addition provide services to the occupants either directly or through an agent. Nevertheless, a joint undertaking merely to share expenses does not create a separate entity for federal tax purposes. For example, mere co-ownership of property that is maintained, kept in repair, and rented or leased does not constitute a separate entity for federal tax purposes. For example, if an individual owner, or tenants in common, of farm property lease it to a farmer for a cash rental or a share of the crops, they do not necessarily create a separate entity for federal tax purposes. For failure to file partnership returns. see IRC Sections 761 and 6698.

Feel better....take a few days an do nothing

Having the taxpayer's ID# on the 1099B is not a real problem. The taxable income should be reported in the correct way regardless of the 1099B ID#. Since the stocks were sold after the taxpayer's death it should never be reported on a 1040, rather a 1041 form. From a tax standpoint it makes no difference if the 1041 is called a trust return or an estate return. Who gets the money and/or pays the tax could certainly make a difference between being a trust or estate. Distribution of the proceeds is irrelevant from a tax standpoint (TOD, Probate, Trust, etc). Regardless of what form it is reported on there is a step-up in basis unless it was a non-revocable trust that owned the stocks and had already received a step-up in basis on the stock.

If there are two or three major ones, I enter them separately on my supporring sheet and then enter the balance as "Per Client List". I also photocopy their info. That is only for my records, since nothing goes on the Schedule A but the total. One thing I do is to check for the "No Goods or Services" boilerplate on their contributions summary if they have any single contribution of more than $250. If that isn't present, I alert the client and suggest that we not file theri return until they obtain a properly worded statement. If they only provide me a list without the contributions statement, I warn them about the boilerplate requirement.

I like both the, the rolling metal and the kind to which Catherine talks. I have in my garage a 1981 Camaro, with a small 305, but boy does she like to go. We bought that car off the show room floor in early 1981 in Waco, Texas and have had it ever since. She is part of the family. She has had the body restored to show room quality a few years ago, the interior has held up remarkably well. And when you take the T's off and climb in on a beautiful spring day and just open her up.....................................Gosh, do we HAVE to finish this tax season?

READ THE TRUST DOC! Like I said, if there is a pour over clause anything they 'forgot' to title in the trust automatically goes into the trust at death. Did I mention the CSTC symposium has an excellent trust class?

I have a fondness for hardware, too -- but I like the ones that go "BANG!". I keep hoping for a cannon for the front yard....

I think you are correct and the W-2 is wrong. Pre-tax payments lower taxable wages but not socsec wages or medi wages.

Joan feel better!! I am *not* looking forward to the root canal I will be having tomorrow afternoon -- but I would rather that than have my back go out! (Plus it's a front tooth so only one root.)

I had a former client from 10 years ago call today. They've been doing it themselves and have 3 states involved! They didn't balk at the extension, but they also have a notice for an unreported mutual fund sale from 2013 that must be answered by 4/15, and they don't have the 1099-B or basis pulled together yet! Yeah, I shouldn't have answered that call.

Lost in divorce, but son (now a lot older than in the picture) owns the Mustang.

My son has a 73 Plymouth Road Runner restored and a 70 Barracuda original; and lots of trophies. C'mon Jack.; don't count us ladies out. My 04 Jeep Overland has the V8 HO Engine and I LUV it.!!!!!

In our old country church yesterday, where I play piano part time and yesterday was one of my turns, I noticed the preacher had left his dunkin' donuts coffee cup on the corner of the lectern. During the "pass the peace" time (an informal meet and greet) I made my way to the pastor, who is once retired and about to retire again, and said, "it is probably not a good idea to leave your coffee unguarded around a tax professional during tax season". Just a couple of minutes later I was back at the piano and that coffee was only about ten feet from me. He walks over, picks up the coffee, takes a drink, looks me right in the eye, and says, "mmmm, it's still warm!" I just about went over the piano after him! Thank you Lord for holding me down!

I had an older couple as clients for years. First time they came to me (in response to an IRS letter; as I recall, the IRS turned out to be wrong...) he had calculated their estimated tax payments (by hand) to within $16 of their actual final tax bill. They are both gone now but I remember them fondly.

Joel said the client was 98 years old, so maybe the successor was already acting under a durable power of attorney.

I learned years ago that a neat professional looking client copy in a nice folder impresses clients. To my thinking, it's a small cost that can be seen as an advertising expense.

10.1 should say... "Thou shalt have not other tax pro before me!"

I'll bet MAS and all the others we are referring to, their home DVD player, Microwave and Stove are all flashing 12:00. This is not MAS, but they have printers but no ink or paper, and e-mail but have no idea how to use it...

I call them at 2:00AM to be sure I can reach them.