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Ah yes, "the hipster underwear taxpayer strategy". Happens to me at least once a year. Taxpayer slips in a flattering (size), popular, functional and colorful 3 pak, trying to gain your generosity in calculating their tax liability. IRS knows all about it and they have sent out briefs on the subject to warn us to not get boxed in by this ploy.

I found it at an art show one year. It's leaning atop a tall bookcase with my clients facing away, so it's not in-your-face or even at eye level. But, it's definitely visible right next to my NY Tax Preparer Certificate and a clock on top of that bookcase. I like it. A couple of clients have commented on it. As you say, they're often stressed and that's why they're here and not doing it on their own.

Your son knows your size from doing your laundry and was concerned that you might not own enough to be properly covered until laundry day or end of tax season, whichever comes first.

I'm scared to death to have one now that I work at home. There is really no place for me to put anyone else in my office. I would have to stick them out in the family room with the treadmill and they would have to use the bathroom/laundry room with the cat boxes.

There is a very visible line between "time wasting idle chit chat" and visiting with the client at a deeper level. The fact of the matter, I have oft said that my practice is 65% counseling and 35% tax and accounting - and I lament (in a joking manner) that I should be charging professional counselor's hourly fees instead of those of a lowly accountant. I did not imply that I do not chase anyone out. I did imply that I will take whatever time it takes with a client that needs a caring listening ear. And I certainly did not mean to imply that anyone here is cold, crass and calloused. I was simply commending the original OP for taking the time with a client that needed it. We each have our own practice with a unique culture. Yours works for you - and mine works for me. To rfassettk: Sorry. I took your first reply as sarcasm, but apparently I was mistaken and overreacted (it's hard to read facial expressions on a message board ). I think you're right about the "counseling percentage" - we had a younger guy in today (50-ish; which is young to me) who was recently laid off from his long-time job. We're doing his taxes (whenever he can get his 1095 form), but he's single, not a "sociable" type, and has nothing to do and no place to go. So he stayed for a long time and we talked politics. I felt good about helping him pass the time and so did he. And, come to think of it, I'm guessing that we average about 30 minutes of chit-chat every time somebody picks up their taxes, so yes, I guess there's something of the "bartender listening" that comes with this job. About the "You haven't heard!?" guy from the other day, though; I now feel somewhat vindicated. When he was here, another man waiting got up and left after about 20 minutes. He brought his papers back in today and, laughing, said "I bet you won't ask him THAT again, will you?"

is that in your office for people to see? I could never do that - altho maybe that is how they feel as well that is so bad!! I love it.. It wraps up everything!! all the tax **, and everything that happens we have to deal with and in our lives that is hard and then it happens during tax season and we have convinced ourselves we have these very important clients and their papers we have to take care of ahead of us - well maybe it has to do with the deadlines and their calls and the piles...

Either that or my mom snuck them in there. Moms do stuff like that in TN. Not sure about you heathens. Tom.

Client read your earlier post....they are stalking you on this board. Man, you people in TN are weird...and that is saying something coming from the land of fruits and nuts. Tom Newark, CA

You can see the print on top of the 6' bookcase. Office door is to the far right. In front of the double sliding closet doors on the left are my two client chairs. So, clients do walk past the print, but it's over their heads and they are never really facing directly in that direction. It does get a chuckle now and then.

I quickly learned with 13 (my first year) that a Desktop shortcut to Admin Console was a must have. Yes, it's in the Windows menu, but I'd rather double click a shortcut than click/hover/slide/click etc. a menu any day.

This painting reminds me of one I remember years ago that made an impression on me. It was titled Primal Scream, and I think it's BHoffman's. It shows the anxiety and panic that only makes the misery worse...Oh God, now I don't feel so good.

I have the MacNelly 1976 tax form cartoon up in my office. Everyone who bothers to look at it gets a real kick out of it.

Gee, for such a small amount, it would be so tempting to just follow Jack's advice. But the fact that the client did not make that choice, but brought it to you, means you have to deal with it. After all, should this not be handled properly, the IRS can come after the executor. Would they, over such a tiny amount? Highly doubtful. So my next question is, who got the money? If there is only one bene, I'd show it on his return, on line 21, as nominee. If there were more than three, who each got their share, I'd follow Jack's plan. Either way, I would not try to revive the estate for that amount.

This worked for me. Try: Open CCH small firm services in the start menu. Choose ATX 2015 and then ATX 2015 Admin Console, let it open and let it process. Close it and open ATX 2015. It works for me every time and also lets me open prior years programs without a hitch. I put a shortcut on the desktop next to ATX 2015 and run it every time.

So sorry, because it is SO funny. Here is the youTube link.

Sounds like a perfect place, actually.

I try to make auditors as comfortable as possible. I have found that if you are nice to them, they usually tend to be a little more lenient with the client. It works more often than not. As KC says, they work year round and can't just sit in their office and twiddle their thumbs during tax season. What bugs me is all the workmen's comp audits that have to be done during tax season.

laughed at fdny!! I received 2 pair of whitey tighties - figured it was a pass! but they were dirty so I passed and then his sister came to collect when I told him but they were already passed into the gargahge!

Someone read your post about your son doing the laundry....

Nobody has ever given me underwear. I am just not sure how to react to that.

No way to avoid them, there is no rule against it, and they do audits year-round. BUT, you do not have to let the auditor take over YOUR office, Marilyn . You tell him/her where to set up, they have to respect your rights, so if the only space you can offer is cramped, the 'desk' is a wobbly table in a corner with a folding chair, etc, that's what they have to use.

Kiss my ass

I'd love to except that his parents are visiting and they are all at Lake Pleasant today. Tax season, pet demise, and in-laws visiting....oof. His brother and sister in law are visiting next week.....

Well, I certainly do. The one that comes to mind is the jackass that always says, "I don't know why I don't do this myself. I could do it in 15 minutes." He hands over his stuff and proceeds to chat for 30 minutes about all the candidates for POTUS, how everybody should tithe (but he doesn't - hello) and how ObamaCare screwed him over last year. The thought bubble that I hope was not visible over my head: Oh, yeah, because you applied for the subsidy all by yourself because you are so smart and then had to pay it back. Oops. Tell me again how you should do this tax return yourself.

I'm not sure this has any effect on the issue but at the end of each day I shut down my computer in my home office. The next day I turn it on, fresh. I have not experienced the issue once this year. I'm sure many of you probably do the same as I and are still experiencing the issue. Just wanted to relay what I'm experiencing. Hopefully it will be resolved at some point in the future. Overall, (and I'm not looking to jinx anything) I've found the 2015 program to be working very well.

How did they manage to negotiate the check? I agree to treat it as KC suggests, but I am surprised that they did not have to reopen the estate to negotiate the check if it was made payable to the estate. The bank must not have been paying attention. Very lucky!

Yes it is, for non occupational disability.

Yes, that's what I'd do. But I'd put the whole amount, as 'received from Estate of ....' then subtract the payments off as 'paid to bene...' If that confuses the IRS, they will send the client a letter, you respond with the simple explanation, and that ends it. Most likely you never hear a peep about it. But everything has been disclosed so your client is in the clear.

KC...thanks very much for your input. The funds were distributed to the clients wife. She in turn cut a check to each of her two sisters for $255 each. Maybe its best to place $255 on line 21 for my client?

Thank you

Clear up one question, please. Did they receive the cash, as well as the 1099R?

I had an IRS audit letter saying they wanted to come during tax season. I wrote them a letter saying, no way and got it postponed until May.

Well, new client left a nice new package of hipsters underwear in her bag of old tax returns for me to review. I'm happy with a jar of homemade apple butter, but this is special. Proud day for me.

Is there any chance the estate return was NOT marked as final? That would simplify things if so. The only other thought is the possibility of having to amend the estate returns and the bene's as well.

Thanks KC for the link. I very well may just do as you say and paper file the return.

Tell him to put it in the file with the Estate return and have a good night's sleep.

It would be a gift if less than FMV, and a related-party transaction, too.

CT goofed on the property tax and now admits it: http://www.ct.gov/drs/cwp/view.asp?Q=578316&A=1436 ERROR AFFECTING SOME RESIDENT STATE INCOME TAXPAYERS BEING CORRECTED For Immediate Release: Friday, March 18, 2016 Hartford – Connecticut Department of Revenue Services (DRS) Commissioner Kevin Sullivan issued the following statement. “Late Thursday, DRS discovered that certain information provided to some resident income taxpayers claiming property tax credits was in error. The error does not affect single filers claiming a property tax credit but does affect some other filers claiming the credit. As a result, about 7% or approximately 120,000 of all resident income tax returns processed to date may have resulted in a higher credit to their tax liability. When we make a mistake, we own it and fix it immediately. In this case, we did not correctly inform taxpayers of the additional phase down of the property tax credit enacted by the General Assembly in the 2015 legislative session. This year the DRS will process 1.6 million resident state income returns and while this affects a relatively small number of income taxpayers, I apologize for our error and the inconvenience to those taxpayers. Affected taxpayers who have already received refunds or whose tax payments were completed before the error was discovered will be notified in writing by DRS. Those with a resulting underpayment will be billed without penalty or interest for the balance. Those who already received a refund will be given the option of making repayment now or as an offset when filing for the next tax year, also without penalties. Those whose returns were not processed prior to March 17th will either receive a reduced refund or notice of additional tax to be paid.” Additional Background and Information: The Department of Revenue Services has discovered a miscalculation in the Property Tax Credit applied to the resident Personal Income Tax. For certain filing statuses in the 2015 income tax year, it is anticipated this miscalculation has resulted in about $11 to $12 million in underpayments of personal income taxes across fewer than 7% of income taxpayers. As part of the biennial budget, there was a change to the Property Tax Credit as it applies to the Personal Income Tax, which reduced the income thresholds at which the credit would begin to phase-out for all filing statuses. That was due to take effect on July 1, 2015 and apply to the 2015 income tax year. However, DRS’ system was only applying the change to the resident Property Tax Credit to individuals filing as Single. As a result of this miscalculation, individual taxpayers who file with the statuses of Married Filing Joint, Married Filing Separate, Qualifying Widower and Head of Household, who fall within the affected income thresholds, would either be underpaying or filing for refunds in amounts higher than they should have received. The Department of Revenue Services has stopped processing income tax returns that fit this criteria until the error is fixed.

Maybe next time won't be during tax season and you can take your dog and go to a spa somewhere while they visit with hubby.

"..... Just don't rely on only verbal, you want it in writing" Agreed. I told him HE needs to get me something that show a basis and suggested he call the lawyer.

Really hoping it was a mistake.

If your client is the one that sold, you report the sale for whatever the brother paid him and use your client's share (1/3 ?) of the DOD value. It sounds as if the brother that purchased may have used the DOD value as the amount to purchase out the other two. If that is the case and if your client didn't incur any other fix up expenses or expenses of sale, then the sales price and basis would be the same figures and there would be zero gain or loss.

OJ For those of you who need a good laugh, watch this short video.

Esquire wow!!! What else can we add to the end of our name? I had an administrator in a school that I taught at send memos with every designation possible at the end of her name and almost to the point of "Really" So, in my infinite wisdom I replied to a memo that I received from her that was somewhat derogatory and signed my name at the bottom with the designation of KMA after my name. Nope, she didn't get it.

My assistant was just saying today that it was a good thing video phones have not become standard for communicating since clients could tell by my face what I was thinking when I answered their calls.

I have been at this nearly 30 years and many of my clients are like family. It is sad to see them decline and pass on and sometimes I stop and remind myself that they are also seeing changes in me. There are a few of my clients that are no longer able to leave the house and so I make a house call. I'm glad to be able to offer this small service and I am always happy to see them. That being said, there are also those that make me cringe when I see them coming through the door, but the good far outweigh the bad.

Or watching a client's wife come down with alzheimer disease, and them him dealing with her and then having to place her in a home. Every time we meet and I ask, this year you could see the sadness in his eyes, very tough But for the grace of God go I.