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I agree. It just really makes me mad when they try to make me think I don't know what I am talking about, when I no for sure that had it been the other way and they owed taxes, that they would have a hissing fit that I included personal money invested in the business as income. I had a funny feeling about this as soon as she sat down, and today just confirmed my suspicion. I would have had a very difficult time answering truthfully the questions we have to this year for due diligence and would have even a greater time trying to document the additional questions I asked and the answers I was given. I didn't bother telling you that the same preparer did another schedule c and included income and donations as income which was suppose to have been done for a non-profit and shouldn't have even been on this guys personal tax return, so I am really glad that they are gone, and now I can move on.!

March madness around here, like always. I'm very tired, and that makes everything seem worse than it really is. Funny thing, I feel like people are dragging their feet about giving me additional information, but then I look at when I sent the email and it was only about 3 days ago. Feels like 3 weeks.

My office cleaning lady (me) is behind. My copy and assembly and receptionist girls (me, me, me) almost had a breakdown(s) last week because of staples and unopened envelopes and that one guy who comes in when she's closing the blinds and already clocked out and stayed an hour and the time change and something about a wine per diem. My preparer (me) is doing great. I think. I like thinking that and it's the first day of spring and will be 70 degrees and sunny here today, per my weather girl (me). I am about where I always am, perhaps a little ahead.

Dear Client, Thanks for bringing in three copies of your 1099-Int for your checking account and nothing regarding the sale of $25,000 in mutual funds.

I feel like I'm a little behind on the personals because of having to meet the earlier deadline for some of the business entities, new returns, some complications with existing ones. I really don't keep track. More of the personals came in earlier this year, possibly because they actually did receive the documents earlier from brokers and other payers. Other than maybe a handful, just about every return has some issue. Nothing is going smoothly this year, but the clients don't know that. They are all happy, and that is a good thing. I am very, very tired and am working in slo-mo. I could audition for one of those zombies on The Walking Dead.

I put Roth first, because it would be my preference and what I actually did with my son when a 1099 showed up when he was a teen (we thought it was C-I-T with no money either way, but he got a check and a 1099 at the end of camp, so we immediately opened a Roth). But, I've had parents insist they want the traditional for their child if it saves the kid only $1. I don't make the decision; my client does, or their parent if a minor child client.

I'm moving along but a little slower than last year with about a dozen waiting on info and the fact that I need driver's license info for about a hundred NY returns. I failed to put the request in my letter because I didn't know about the requirement on 1/2 when my letters go out (actually all set up in Dec.). I do include a sentence in the letter to please remove all documents from envelopes, but only 75% compliance. At least I have a cleaning lady and assistant, but don't say anything, if she heard me call her that I'm dead, uh oh, here she is, gotta go...

Here's a selfie. I need a shower and a haircut for sure. Haha, I crack myself up...or I'm cracking up....

That last year's preparer must have a sign on his desk..."If you're willing to risk a little jail time, I could save you a lot of money."

I'm pretty sure that I'm behind in completed returns. I haven't checked lately. I definitely have plenty to do, with a lot of complicated returns. Many of my clients have been much later than normal this year, which is driving me nuts. I did check and I don't have information from several that are not normally this late. I do know that I will have extensions to file for a few that passed away and their reps are still pulling information together. I now have eight envelopes of information mailed to me by one clients that have arrived at various times. I'm not sure when it will be safe to finish. Another one is faxing me more info today that they found after three mailings. I could just cry. Getting all of the information for kids and tuition has been a real drag this year, they always have to get it to me later, even though it was in my letter. My being so sick and then my mom getting really sick last week did not help me at all. I lost my husband's (receptionist) help for all of last week while he stayed with my mom. I am tired, crabby and just want to get as much work done as possible before the 16th, because my son just told me that he can come home for Easter for a couple of days and I want to be able to spend some time with him.

I feel behind, because all those partnerships clogged up the last month while 1040s kept dropping off. And, when I think I can pick up speed on personal returns now with no more stops for businesses, they're missing info and the new NY DL requirement and the time change and I'm tired and my granddaughter will be here for a few days next week and every single one has something new -- I retired; I received this 1099; I moved to a new state last summer; my kid dropped out of college and moved back home; my health insurance changed. You know, I was really good about asking for DL at the beginning of the season, but spending a couple weeks/a month on biz returns broke my stride. I've been forgetting, and then have to wait for them to upload a copy or fax. I'm using the E word as of today and just hope that my back log before today can be completed by the deadline. Today received tax info from a client who emailed me 3/2 about giving me his documents, and I told him as of 3/2 we could file on time; don't think he'll be happy today when I tell him as of 3/20 we cannot file on time. I think I have more in-house/complete this year with new clients, but I have more that I haven't touched right now that at this time last year.

I am behind, but also ahead. I have engaged 16% more returns then I had in the office last year at this same time, so that makes me ahead. My completion rate is on par with the prior year, so that is good. But I am behind in billing, and that is troubling. Otherwise, its 29 days left... Rich

I notice every year that before 3/15 the conscientious people get their work in with very little additional problems, after 3/15 everyone has an issue and it always takes longer to get the return done. The worst of them drag it out without any regard for your time, as if their return is your only concern. Hang in there Black Bart, don't lose any sleep, although I see you are up early this morning. I agree with how you are handling this situation.

Where are you relative to years past? As of today, I am moderately behind on prep work as I have a number of returns waiting to be started (I have the information, just haven't begun them). I'm way behind on getting the completed packets to the clients. Once my client reviews the completed returns and delivers me the signed 8879's, I transmit the e-File. Once the e-File is accepted, I prepare a packet of information for the client including copies of the returns with my signature. Still have to prepare many of the packets.

OK, I need some reassuring although I believe 100% that I am right. I had a new client (she just came and picked up her stuff) who has 2 schedule C businesses of which both are showing a loss. The client presents me with a summary of the information of which first of all I notice is almost a carbon copy of last year (red flag #1). Told her I would need the receipts for donated goods (exceeded 3500.00). Looked over the previous years return and noticed the previous guy included in one of the businesses as income the amount that my client borrowed and has since repaid from a family relative, thus boosting the income (which I believe is to manipulate the EIC). Looked at the year before that and saw on the same schedule C under other income an amount of $21,000 of which he did specify on one of his worksheets as money that the client personally put into the business, again boosting the income and manipulating the EIC. Correct me if I'm wrong, but loans, or money personally invested in a business is not considered income to the business, correct? They are stating that they contacted a couple of CPA's and were told that it was income, (I seriously doubt this) and that they contacted IRS and they also stated it had to be included as income. (I seriously doubt this as well because I haven't even been able to contact IRS in behalf of one of my clients). I honestly feel that because I did the return right by not adding the other things in as income, it brought their AGI down to 5,000 and thus very little EIC compared to the previous guy who's return netted them exactly the peak amount of EIC. What do you guys and gals feel about this? Am I wrong? The one and only audit I was involved with was with one of my business clients and the thing the auditor started with was adding up all of the deposits from every bank account they owned, then subtracted out any that was simply moved from one account to the other, considering any draws from the business account as personal draw and any money redeposited into the business account from the personal account as personal investment. When all was said and done there was a discrepancy of about 3,000 for which he stated if we could explain it then he would be happy to close the audit and for which we were able to satisfy him. So I'm sure I'm right, but then again what if I'm wrong? Any opinions would be greatly appreciated!

You were (and are!) 100% correct. Loans to a business are balance sheet items, they are NOT income. Unless in the very rare circumstance the loan is from a non-related party and has been forgiven; then you have income. And a Cancellation of Debt form to go with it and back it up.

I don't think any of us like for someone to go away mad at us and feeling like we don't know how to do taxes. BUT I don't look good in an orange jumpsuit. You have to decide if you want a reputation as someone who can always get the most refund. or as someone who knows what they are doing but will only do it honestly. I think you made your choice, and it seems to me to be the one that will let you sleep well at night. There are firms in my area that I could refer that client to who would probably continue doing things the same way, or even worse. But I don't want to be one of the firms other people dump their crooks on.

loans or capital infusions are not income. I think your assessment seems correct, that they boosted income to get the eic, or to get a loan. this is not a return I would have done either.

I agree with you 100% It is a return you do not want to do.

Lion, why will you open a Traditional IRA since this is the perfect example for a ROTH IRA. She should pay the $150 SE tax and open a $1,200 Roth IRA. Changing it from box 7 to 3 doesn't change the character of the income. Why would you suggest that? No wonder he was reluctant to the suggestion. Remember that they have direct access to the barber and even the barber knows that changing it from box 7 to box 3 doesn't make a difference. You also said "without her exemption she owes SE tax". She will owe that tax even if she claim herself and her 13 years old brother OR she claims herself and her 9 years old sister, for that matter.

At the beginning of last week, I was up over the last two years, but not by much. By the end of the week, i was down. It was a very slow week. Hopefully, this week will be better.

Please don't. Sorry, you've had it rough. If you cry, we all cry.

Did the client issue 1099MISC for 2016 to the landowners for the rent that he paid them? It seems to me that would have encouraged them to either return the checks or cash them.

The folks with the Fingertip Tax Facts -- I used it this morning with a client to answer a question. She loved the little thing so much she wanted ordering information to get one for herself! I thought folks here would be amused, since so many of us bought them.

Take the deduction and rest. Keep copies of the contract and the checks issued. If they are not answering his phone calls, chances are that you will not be able to get their SS#. Maybe they are in jail already... sorry, I couldn't resist.

No restrictions on cashing of the checks. Client said he saw two of the them last year and gave them their checks - I don't know about the third guy. One said at the time that they were having legal problems with their grandchildren and a trust. They don't come around or return his calls now. He never issued any 1099s. Don't know if he will want to now or not - will ask. I think I'll deduct the two who received their checks and ask client what happened with the third guy. Checked Arkansas escheatment - five years on most property, but no rules on checks and drafts. Too complicated to worry about that anyway. Someday; somebody's going to bring in a straightforward tax return with no hitches and I'll pass out.

She owes SE tax.

Client filed SS-8 for employment determination. It should be a slam dunk, cause he has all the check stubs showing the deductions and the employment agreement that says he is an employee. IRS returned the SS-8 package because they believed the signature did not look original. I was in front of the client when he signed it, and if you rub your finger over it you can feel the indentations in the paper. Things that make you go Huh..... Tom Newark, CA

You came to the right conclusion. You don't want to be anywhere near this return. Even if 2016 is prepared correctly, the prior years are a time bomb waiting to explode. If it happens, they will try to blame you for preparing the "correct" return and thereby alerting IRS to the prior-year problems. They will just throw stuff against the wall and see what sticks, plus they will try to throw any and all people associated with any of their returns under the bus. There will probably be no end of aggravation waiting for whomever is holding the bag if/when this blows up. (I'm nowhere near being out of figures of speech, but I'll stop here anyhow).

I keep it in my conference room for quick reference with clients.

I've used it a few times, especially on the phone while I flip thru it with one hand.

Canadian Pensions go on the worksheet titled FECWKST. The exchange rate I have from US Treasury as of 9/30/16 is 1.3160. If NR4 is from Service Canada Old Age Security it goes on the Social Security worksheet. I think you may need to check that the Quebec Pension plan is not considered social security.

I saw KC answering this post and I got happy to see her again... EXCEPT that this is an old post. What were they renting? Maybe it is not material and you can just calculate the depreciation allowable reduce the basis and be over with.

It was for services rendered, so Box 7 and SE tax. Unless mom wants to risk loss of chair by having daughter file an SS-8 and Form whatever-it-is that says she should be an employee and pay only her half of the FICA/medicare. Do check your state laws re labor in a salon, probably something like 16. Might give you some leverage over salon owner to issue a W-2. But, didn't mom notice that daughter had no withholding? Didn't mom have daughter turn in a W-4 to salon owner? Why is mom upset months after the fact, but didn't mind daughter getting money during the year?! Silver lining is that daughter can start her Roth or Traditional IRA and get a jump start on college saving.

Roberts: I will score the Tix with some others, and then we will junket down to the Masters. Probably rent a large RV to sleep in, and of course for me, I will take the laptop to stay on top of things. I know that Tix are available around the gate, but I do not want to have to guess. I am in the drawing for Tix that the Masters holds, if I get selected, then that is the year to go.... Otherwise, my golf group goes to North Carolina in Mid-March for 4 days of golf. Haven't been able to go in the past, but think I can in the future... I am missing some time during tax season anyway, so might as well continue later with something fun. Rich

Sara: And that is where I say we make a difference. If your practice becomes too much drop off, and no personal contact, it becomes a commodity, and the client moving on to the next preparer gets much easier. I would hope to have time to say hello to my clients, even if it is for hand holding. I meet a large majority of my clients at drop off. We get to talk then about the return, so the follow up is email or some phone calls, and I do not meet with as many at pick up. I also offer to meet after tax season free of charge to go over "other things" that need more time. Clients do get in the way of us getting work done....But they are why we have work. I get a lot of biz from other preparers who stop meeting their clients. Rich

I'm trying to retire, but still have a few clients who won't let me. The last couple of years, I have taken RV trips during tax season. But, alas, the computer goes with me.

When they start that with me, I always hand them an extension.

I thought it was only clients who take vacations during tax season. If I hear one more "We're leaving on a cruise so can you have this done by the 1st, or we'll be in FL for the month..."

I have a lot of clients who drop off or mail their tax docs. I email them with my questions or answers to theirs, but I usually call them in person when I'm done to relay the results and any tax advice that appears helpful. I think they appreciate having contact with a real person somewhere in the process. It seems kind of cold to drop off tax info and pick up a completed return without ever reaching out to a human being. Watson could have done their return for all they know. On the other hand, I've had it with calls from people who just have to talk to me--to make an appointment or tell me they'll drop their stuff off on whatever day. Wish the receptionist could do better at screening these calls, but she's just as busy as the rest of us.

It's my Gwen's 24th birthday today!

the key is that they are receiving a series of substantially equal payments over their life expectancy or if joint beneficiaries over the joint life expediencies. Lots of people retire before age 59 1/2. when paid as an annuity it is not premature; a one-time distribution is premature (unless there is an exception)