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What they really should do is do away with EITC totally. The article does not mention the millions (maybe billions) of EITC fraud that does not involve identity theft. I'm sure I'm not the only one who has had the client who wants to use his brother, sister, grandchild, or other relative to claim EITC because the parent already has enough qualifying children to claim the maximum EITC. Or the bogus Schedule C income or "lets not claim that expense" to increase the EITC. I throw these people out of my office but I'm sure they just keep on shopping until they find someone who will do it or learn how answer the questions "correctly". If the government wants to help these working poor, find a way to do it that does not involve the tax system and is easier to verify.

Can you text or email or snail mail a note? I can't get over the people who won't check voicemail. I'd say your guy has gotten the message, but just in case, I'd try another method of reaching him. Then, I'd just wait on him to pick up. It's your only chance of getting paid, and we do this to earn money, after all. There are two kinds of people, and he's in the second group. They experience zero anxiety about stuff we think about at 4:00 in the morning.

Given the lack of response by electronic means, you may want to send that note Return Receipt and add the cost onto the bill. At least then you would know the message was received by someone. I recently read an anecdotal story about the lack of electronic response from a casual acquaintance only to find out a month later that the person had died. Hopefully this isn't the situation here but one never knows.

It's idiotic. To efile you either need a new PIN (which is worthless) or you must give last years AGI and PIN. Why not require last years AGI? Any tax software could roll that forward (even Turbo Tax) and if you have last years return you have it to enter manually. If they wanted to get rid of the fake return fraud, it would be exceptionally easy but they choose not to for a reason.

If you're going to mail them anything, mail them a bill.

Millions waited longer this year too, and I'm fine with that. Some are still waiting if their APTC did not match the 1095A. I just faxed off a corrected 1095A today.

We've had people on here who've had horrific situations they've battled through - maybe your client is in the same boat. Illness / disability, death, unemployment? And you aren't a priority. I'd scan a copy of everything so it's like I still have it. I'd return them all their documents with a letter explaining what is required to restart / complete the process. They might get to you eventually. They may simply not have the $1k and don't want to deal with any of it.

Until America is cured of the addiction of the IRS savings account and demanding very fast refunds, the scammers will always have the upper hand. To stop the scammers, force everyone to wait for refunds till June or July, giving the IRS time to data match. Of course, all the financially irresponsible Americans (probably 80%+) will scream loud and long about discrimination and a new "war on the poor."

Even if do our due diligence on EITC, we are not 100% sure if the client is telling the truth.

Here's the sign I prefer if my office. It covers all sorts of situations. OfficeSign.pdf Although with some clients I occasionally I want to pull this one out:

I can't remember when was the last time I had a refund.

I had a client whose identity was stolen in 2014. He actually received a letter from IRS re 2015 refund being held BEFORE his legitimate tax return was even filed. So, they are making attempts to stop fraudulent returns. On the other hand; all IRS agents I have spoken to; agree that the PIN system is broken and no longer of any use. When I actually filed this particular client, using the PIN, it was rejected. Had to contact Identity Theft Dept and go through all the hoops again. Good side is: Thief never got the refund.

Just to add, I really like this printer so far. It is the fastest one that I have had. I do like the duplexing and it will save on paper. Currently I go through a case and a half during tax season. I will probably end up buying the add on paper drawer. I too have always had the best luck with HP printers. I had a brother MFC that was color. That was a huge mistake, op belts, toner, priced off the charts. A new printer would have been cheaper at the time. I wore it out in 3 years. Back to HP's and no real problems. The HP 2015 I retired lasted 10+ years. A friend of mine works on printers so I am giving it to him to go over and see what it needs. My wife can use it for her stuff if it is still okay.

I'm with you. If I have a refund, I made a major planning mistake during the year

I put the clients folder in the hold drawer and we email them once a week to tell them it is ready. I have 15 folders going back three years in the drawer. If they call I tell them they can pick up their stuff or they can pay the bill and file.

What I'm going to suggest is unpopular, but here's what I'd probably do. Maybe I'm just feeling overly generous today. I assume he owes about $1,300 based on what you said. Unless it's a terribly complicated return you are best served to get rid of it. I'd print out the return and mail it to him via certified mail with return receipt. Add a fee to the bill for paper filing if you are inclined to do so, plus a charge for the certified mail/RR charges. I'd include a note that he is incurring about $12 per month of charges (interest plus FTF penalty) on the $1,300 as long as it remains unfiled, but if he doesn't file by Oct 15, IRS will add another $65 per month to the aforementioned. Recommend that he file the return with IRS using the same method you used (certified mail with RR). The certified mail with RR proves he got the return from you, and the letter gives him proper advice on what happens if he delays or doesn't file by Oct 15. Maybe he will pay and maybe he won't, but at least you don't have to think about the situation any longer. If he cheats you out of your fee, at least you'll be able to prevent him from cheating you again in the future. Sometimes the best stress relief is to claim the high ground and move on.

If they don't send a check with the 8879, don't transmit until you do get the check.

Nope! Could and maybe should do that. Of course, I am never going to get paid.

I still agree with OP. There should never be a loss allowed here for anyone since it was gifted property. Yes, there most certainly could and probably should be a gain.

I didn't say the cousin was living in the house. We don't know what it's being used for. It could be investment property--maybe to turn into a rental or hang onto and sell when prices are favorable or use for a commercial tax prep business. If cousin lives in the house and later sells, most likely will be a gain (if mother bought a long time ago and has a low basis) subject to the $250/500k exclusion if cousin lives there long enough.

Nowhere does It say that anyone is even living in the house. Also, since it is not inherited property, how does anyone ever get to take a loss on personal property?

Mom gifted the house to her son, who gets her basis. He in turn gifted the house to his cousin, who now gets his basis (which is the same as Mom's unless son made some improvements before he gave it to cousin). Unless, of course, the value of the house decreased below the basis in the interim, in which case there are two bases--basis for loss and basis for gain. In either case, it is now the cousin's problem when s/he sells the place. There was no sale from client to cousin, so capital gain or loss is not in the picture. Cousin is the one who will have a gain or loss when he or she eventually sells.

Thanks for your reply, Sara! Although I have some wealthy clients, none of their families (at the present time anyway) would ever need to file a Form 706 in the event of their death. If a new client would come to me with needing to file a Form 706, I would refer him/her to someone who deals with these returns on an on-going basis for their best interest....and the fee I let "slip through my hands" is irrelevant, to say the least. It is impossible for each of us to know every single tax law. I have talked to CPAs who have no problem with performing tasks for companies such as Exxon Mobile Corporation, but same people told me they wouldn't touch a 1040 with a 10' pole! A 706 is definitely not a return to "give me a while and let me research and I will then file it for you" as was told to the individual during tax season. Mind boggling to say the least even if a Form 706 was the correct form to use! I would love to be able to talk to the preparer to make sure she understands why the return couldn't be filed, however, a family member tried to contact her in regard to the $100k tax liability was....let's just say....not met with open arms. Also, I have since discovered that some other returns she prepares aren't correct also. In those cases, she claims the standard mileage deduction in addition to depreciation and other auto costs plus the meal and incidental allowance rate (100% at that) for employees who are not eligible for either travel or the meal deductions, although they do enjoy the huge refunds they receive. So on one hand this "former IRS employee" turned tax preparer is a true Robin Hood....taking from the rich (or so she thought) and giving to the poor by preparing a return where taxpayers are told they owe right at $100,000 (when they don't owe anything at all) and giving huge refunds to others of which they do not qualify. I inquired about the age of the individual thinking that perhaps dementia had set in, however, the lady is years younger than I am. So, the questions is: exactly what job did she have when she worked for them? 1. Janitorial, 2. Receptionist, 3. Customer Service Rep answering taxpayers' questions (and we all know about the answers people receive from them), or 4. None of the above (advertising ploy) Whatever the situation, it's preparers like this one in question that give the rest of us a bad reputation sometimes. Take care, Cathy P.S. This situation has continued to be on my mind, so I know I must do something about it.....just don't know which way I'm headed just yet.