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I agree with Jack. We have some in the back drawer that are 3 years old. Just waiting. We do the work and then one day they wake up and say "this is the day". Or they get a letter from the IRS or State and they have to do something. They show up, we get paid. I show no judgement. But forget about it. They don't care. No telling what's going on in their life right now. I had one last month that I've been sitting on for 2 1/2 years. I did 3 years for the client and then he dropped off the face of the earth. He calls pays me $1200. I thank him. And everyone is happy. The problem is we care, they don't. Remember it's only business.

I really like this idea. Now that I recall, his son came in and filed an extension last year and never did come back with his SE info. His excuse, he was getting married in the summer and didn't have the time. I think it is time to rid myself of these losers.

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

http://www.engadget.com/2016/05/18/microsoft-windows-7-service-pack/ I find this interesting: Going forward, Microsoft will offer monthly non-security rollups for Windows 7 SP1 and Windows 8.1 via Windows Update. In other words, a single monthly patch will cover all non-security related fixes, while security releases will roll out whenever they're needed. ...but I don't look forward to multiple security updates during the month.

My grown kids who make little in PA coal country had to send in copies of their 1095 forms (why? it was Medicaid. Doesn't the IRS have access to those?) and were finally told that they will receive an explanation 31 May of why their refund is being reduced by $500. Had a baby prematurely in November, so a refund for 2015. And, my first filer of the season, a little old man with SS and a tiny pension who's had the same amount w/h from SS for years and years just received his refund. I don't have any returns with less income than those two. Why doesn't the IRS chase people with huge refunds or big changes from year to year or SE income or the thieves that stole my SSN last year?!

Oh, wow, I have one or two every year that take forever to pick up. I had one to pick up today whose return had been ready two months. Got another one laying here, and I don't have a clue when they'll come in. I got both extensions, so I wouldn't have started worrying till October about either one of them. Yes, I do have one in the back for whom I did three returns a couple years ago who has never picked up. I guess he's in the dead file. Bill, yours is in the Nursing Home, or Hospice care, not dead yet, there is hope!

I had my first of these this year. I guess I need to make a dead file.

I've clients who left papers with me and never came back. After four years I destroy the papers

The thieves already have a handle on obtaining PINs and last year's AGI. I too had a client who received an IP PIN this year and his return rejected because one had already been filed. Seems the crooks stole enough info about those whose identities they used last year to answer the "out of wallet" questions on the special IRS tool (use reserved for those issued IP PINs) to pass as the real taxpayer and get a new IP PIN. For others who just forgot their last year's PIN or AGI, they just had to log onto another tool, enter their SS# and birthdate and get a valid PIN issued. The thieves actually programmed computers with that info they had stolen and robotically requested PINs. Once the IRS noticed over 700k inquiries, a "tad" over the usual usage, they shut down the site. The "get transcript" site was shut down for similar reasons. The IRS has tried all kinds of ways to verify the identities of the "real" taxpayer, but the criminals are always two steps ahead. The IRS knows they are dealing with international criminal gangs who have the brainpower and resources to get what they want. It's no longer some guy sitting at his home computer with the info his girlfriend stole from the dentist's office where she works. I have long argued for removing the EITC from the tax system and putting it back into Social Services (where it used to be and was called "welfare"). At least there the applicants have to meet face to face with someone. They have to bring documents to prove they are who they say they are, their kids are really their kids, really live with them. People have to do that to apply for food stamps, housing assistance, etc. People should bring their documents and completed returns to the Social Services office and then get approved for the money. Tax preparers and IRS agents are trained in accounting and law,, not social work. So let the social workers do their thing, which they are way better at than we are. That said, removing EITC from the tax return won't eliminate the fraud. Sure, there are the folks who hide income, hide spouses, claim kids who aren't theirs, change addresses, whatever it takes to max the EITC. But a lot of the organized criminals don't even claim EITC because they know it gets extra scrutiny. They make up W2 info, often with employer EINs they obtained from discarded or intercepted or purchased W2s, and file away. A fake return filed for one of my clients last year showed income over $60k--no EITC there, but a hefty refund with the excess withholding reported. (The clients makes over $600k and if she gets a refund always applies it to her estimates.) Only holding off on all refunds until matching can be done will solve this one. Or will it? In CT, the Dept of Revenue Services said crooks were going so far as to register fake businesses (online of course) to obtain EINs so they could then make up W2s. If these same crooks then file the W3s, 1096s, etc, they'll still outsmart the IRS. Maybe the only way to stop the theft is to stop refunds. In PA, if someone is overwithheld for local taxes, they actually have to give an explanation. The amount withheld is always the amount due (except for self-employeds). There are no refunds.

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 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.

While jklcpa's 1099 situation is certainly not funny (I don't know WHAT I'd do with those two 1099s), it DID bring to mind something humorous (now-not then) which happened to me many years ago. A new client; a young guy (mechanic) wanted to work for himself - had no business experience but he dreamed of release from the factory time clock (can't blame him - I've punched one myself), so he dove in head-first - borrowed $75K (much more than he could ever hope to recoup), built a new garage, had his wife quit her sewing job, made her secretary, receptionist, and (last-and least) bookkeeper. The first year he hired four guys and after a stunning $15,000 loss decided to reduce expenses next year by having his wife prepare the W-2s herself (instead of paying me ten bucks per form). 941s and sales tax get me $45 monthly plus $225 for the 1040, so I figure what the hey -- I furnish her the blank forms. She asks "How many copies do the employees get?" "Three," I say and explain the red A's for IRS, copy 1 is for AR, D is hers, and the B/C/2 copies are for the employee. A blank stare and then she says "But, the employees get three copies?" Thought nothing else about it 'til the middle of February when she brings her hand-written "D" copies for me to look over. Now, I'M stunned. There are three Ds for each employee. I ask "You didn't happen to make three RED copies for each person, did you?" She says, "Oh yes; you told to make three copies for everybody." I ask if she still HAS those red forms. She replies "Oh no; I mailed those a week ago. We don't want to pay any late fees after doing these myself." Twelve W-2s for four guys . I surely MUST have fixed it, but can't for the life of me remember how. Too painful to recall, I suppose.