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New Client, the new spouse of an existing client. Sends me a copy of his 2015 tax return. AGI $168k. Refund of $3,300. Looks good right? Only one W-2, Sch A, 2106 and 6251. The PDF was 140 Pages long.... 140! Sheesh. However. He coded his $5,521 401(k) contribution as Code A instead of Code D. Turbo Tax gladly picked it up as Uncollected SS and Medicare tax and had him pay it in the Uncle Sam. In 140 pages of information, there was NOT ONE SINGLE THING ABOUT THIS entry. I had to get his W2 to confirm it. I have a client for life now. Rich

When I lost my last dog little Miss Meggie, a friend/client of mine sent me a plaque with the following words: It came to me that every time I lose a dog they take a piece of my heart with them, and every new dog who comes into my life gifts me with a piece of their heart. If I live long enough, all the components of my heart will be dog, and I will become as generous and loving as they are. Anonymous. Here's to Mr. Toody and Meggie in dog heaven, I'm sure they miss us too.

OH..MY.. ACHIN.. FRIKKIN.. BACK!! HUGS for everyone!!

Time for hugs, anyone?

So preacher client comes in trying to find W-2 forms. I tell him they sell them all day long at Staples. It's late, and if the church is not going to pay me the $35 I quoted you April of 2016, at least let me see it before you submit to SSA. Preach: SSA? Blah, blah, blah, explain, explain... And then we talk some about the lady who was dealing meth in his rental. Story was on the news yesterday, and he shares how the cops told him they wish he still had the $740 cash she paid him for February rent. Me: $740?

We generally run a cash business here (excepting a few "sure-things"), but several years ago a now long-dead minister told me "If I'm still alive, I'll pay you Friday."

It's actually pretty fascinating. If you take a length of rope - say a foot. Cut it in half, you have six inches of rope. Cut it in half again, three inches. And it *seems* like you can keep doing that ad infinitum - except you can't. At the Planck length, whatever you are trying to divide LOSES any definitive location and instead is suddenly everywhere *in the universe* at once. No locality. Dr. Feinman once said of quantum physics that (and I am paraphrasing here) it is utterly preposterous and ludicrous, and in fact the *only* thing going for the entire field of study is that it is undoubtably true.

A preacher and unreported rents, no that can't be.

Yes, you have suffered long enough, gone above and beyond for this client (I know the type, have one of my own). But you can't let him get you down and I would make this negative into a positive for you. Going full pop on the 1040 is a good start. Here's what I do. Find a way to add on an extra $100 to the bill. Donate it to Best Friends Animal Rescue. Feel good about yourself. Next year, your charitable deduction makes you feel good again. It's win, win for you...and the animals.

Keyword: proposed Until I know more, I'm still going to suggest an extension but let the client decide. I've only had one so far that owed the penalty and he was still getting a refund. That client chose to allow the penalty and receive the reduced amount. His penalty was prorated and was around $300.

Hooray, it will also repeal the dreaded Tanning Salon Tax !

I am telling people that they have to pay for the penalty. If I have to amend, I will have to charge them. As you know you charge for 1040X based on how big the refund is.

It was about a year ago today that my little Mr. Toody passed. I still miss him very much. Good advice

Anything new or any comments on this? I read somewhere (maybe here) that the rollback of the penalty is going to be retroactive, but haven't the foggiest if that's true at all. We are still charging it pending a final say-so. And I'm not discussing it with clients, at least for now; that would be an all-day conversation and I don't think the thing can be nailed down at the moment. Questions arise over: charge it now/ don't charge it now/ amend later/ will amending BE possible/ if so, does client pay 1040X or we do it pro bono/ possible IRS billing later (more customer ill-will from paying cash later than deducting from a refund now). I checked last week with a big-box outfit; they're still charging it. What's everybody else doing?

Client accidentally contributed $26 more into her SEP than allowed. When discovered, quickly, excess was repaid plus 9 cents interest. It isn't reported on 5329 but I think a 6% excise tax is due - all of $1.56 - but that entails Form 5330 but not in the 1040 series. Forget about this? My research seems to say that Fidelity (in this case) should issue a Form 1099R but I doubt that will happen for $26. Ideas? The $26 is 7% of the contribution allowed. Geez, I hate these small issues that eat up so much time.

Here is my theory. More detail is better than less. I had a previous client who now resides in Portugal serve on a jury for the IRS. He told me to NEVER stop reviewing the returns line for line with the client. Those who tried to use the excuse they didn't know what their preparer put on the return was not acceptable to the IRS. Bottom line, the client is responsible for every line on the tax return. I make sure they understand their return, where the information came from and receive the worksheet, statements and whatever else they need. They cannot say they didn't know. So I don't limit the number of pages and I do give them everything the software does provide simple because they are entitled to it. Last year I purchased a binding machine because I have too many clients with 100 plus pages in a return that I choose not to staple. I cut my folder to make a nice cover for the bound documents. Looks professional and includes everything used to prepare the return. Their name and mf firm info is still visible through the cover.

I've had clients come to me complaining about how thick their tax return folder was from their former preparer. I rarely print more than 15 pages of a tax return. They get a PDF with with all the pages that they'll never look at or understand.

Until the Congress passes the law change, follow the law as it is written. Simple.

The two clients I have who are subject to the mandate tax are not getting a refund, so I'm advising an extension. The plan says the mandate will be repealed retroactively, effective 01/01/2016.

Still figuring the SRP. Not discussing it if they don't bring it up. Overwhelmingly they have not.

If the RV has Cooking, Sleeping, and Bathroom facilities, I would report on Schedule E. This would also include Houseboats and Sailboats.

I dunno - I never even read the details; just remembered it from an old seminar and the only thing that rang a bell was the court deciding it's NOT subject to SE. Probably doesn't make much difference anyway though 'cause everybody's got a different outlook and IRS is not (I think) required to follow a TC memo. They'd probably fight this stuff from trench to trench if the money was compelling. Oh...okay, yeah; I had forgotten all about those Planck length-losing localities. Now I've got it. Thanx. You guys have got guts; somebody would have to pull a gun to make me suggest confronting my sis-in-law with an SS-8....

Thanks, Catherine. Seems like a good plan. Your plan should be to go home, be good to yourself and start fresh tomorrow, even later today if the headache is gone. I begin a crown process March 21, day after my birthday. I intend to be very good to me that day.

I am sticking with Judy and Jack and following the same procedures. Until we have a definitive directive or official guidance, I'm charging the penalty or filing the extension if the client chooses.

A CPA I know used to say, give them every piece of paper the tax software would spit out, this will help in justifying their high fee. And I think he is correct.

Interesting, since the proposed bill keeps the Net Investment Income Tax and the medicare surcharge in place thru 12/31/17.

I googled to try to find the worksheets that are typically provided to stockholders when mergers occur. The FirstMerit/Huntington investor relations pages had only the tax filing and press release. If I were you, I'd try googling each of the bank's names and look for the information in the investor relations area, or ask your client to provide the information that he or she should have received in a package of information describing the tax effects of the merger. I did find this post by a CPA that talks about the merger and mentions the $5 per share with the merger to be completed in the fall of 2016 so I assumed this is the one you are referring to. Maybe you can match this blog post up with other documentation to determine if the facts presented in the blog are the same as your transaction. http://www.schlabigcpa.com/income-tax-effect-on-the-cash-received-in-the-huntington-firstmerit-merger/

Instead of filing a tax return, wouldn't the answer be to file a stand-alone 5329 for the kids to report the excess contributions since they never should have been made? They would have to pay the tax for making the contributions, but then no tax for pulling them out and correcting the situation. Or maybe I am looking at this wrong.

I put my kids to work in my tax business at age 12. They stood in front of my office an waved a sign. The shredded papers for me as well, and generally did anything that I would have a "girl Friday" do. They kept time cards on an excel spreadsheet. Every penny they made from me went to their Roth IRAs. I wanted them to have money to pull for college (that is why they started at age 12, so they held the account for 5 years and could pull the contributions if needed). Oldest son did not have to touch his during college. Youngest might have to, but it will be close. They did not miss the money when they were kids, and they might thank me in 40 years when they see what their tax free IRA balance is at that time. But I have no idea what the answer is to the original question. I only opened the thread to see if someone had an answer. Tom Newark, CA

I've suffered enough because the fee for the 1120S was $830 when I've been charging only $375. I'm going full pop on the 1040 with a rental, Sch C, ACA subsidy repayment, Sch D, loss limitations on Sch E2. Film at eleven....

"Unaffordable" is determined using the Affordability Worksheet that is part of the form 8965. If your client meets that test, code A would apply to this situation, and that code does not require any sort of exemption request from any Marketplace. I'm assuming that ATX has the worksheet and generates the "A" code if applicable information is entered.

The IRS was not kidding when they said they are going do a better job with EIC refund or in general, TP called me today, I received a letter from the IRS letting me know they are not going to release my refund until I file my 2013 tax return. My response was yes, what's wrong with that