Leaderboard

I'm about right here.....

Hahahaha, I love you guys. I have a stack of returns where people owe. Pretty soon it will be time for me to change the greeting to, "Hey, this is Rita. Come get your sh*t. Yeah, I'm here, why are you even wondering? Come get your sh*t. Don't even wait for the beep. Hang up now."

The past few posts remind me of something else. The potential client is clearly lying. If a couple of CPA's and the IRS said it's OK, why didn't one of those CPA's take on the project? I guess they want you to believe the conversation went something like this - "Yes, what you're doing is perfectly fine. I see absolutely no problem with it. And the IRS agrees with me. But I don't want to do the work for you. Glad to give you this free advice. Have a nice day. "

Drastically increase your income stream from him, file an extension and ignore him till AFTER your summer vacation. I grow weary of having tax experience and knowledge and being reduced to a baby sitter for incompetent adults. It is a reason I love being in this group because I am one of the least experienced people here and am among people who do NOT NEED tended to like little children.

Couldn't agree more, in fact in our initial discussion it was agreed (so I thought) to amend and correct the error's but when they saw the significant difference in refund, well, you all get the picture. This particular client is the reason we are being slapped with this due diligence paperwork that is doing nothing but slowing us down and putting the fear of god into us that even if we are doing it right IRS will somehow say we are not.

This conversation has (rightfully & logically) morphed into a discussion about bad tax decisions people make when they rely upon incomplete advice. There is an interesting irony in the fact that the topic began with a question related to a beautician/hairstylist tax issue.

Deb is right. And, so are the rest of us here. We good guys/gals will stick together. Don't try to bamboozle us, or we might need a Donate button to buy Rita more acreage.

I like to sleep at night, and I love what I do!

I have no idea if I am behind or ahead - but by Tuesday, I *will* be behind. We lost my husband's aunt last fall, and the cousins scheduled her memorial service for THIS Saturday, in St Louis MO. So we'll be flying out Friday and back Sunday and somewhere between now and then I have to find time to get the hair colored because the grey racing stripe is now an entire sub-continent on my head. And I have Monday scheduled as "out" because about half the time I fly I end up with a nasty migraine and so cannot schedule for the day after. Taking a chance on the memorial service being a day after flying but I can always sit in the back looking pale and wan.

http://lmgtfy.com/?iie=1&q=fingertip+tax+facts

I think we need a topic just for clients who need a Rita-hug. Here's my offering for today. Client is late & I had just about figured he had forgotten. Get an email "on my way; be there in 10 minutes!" Shows up - big box of tax stuff he grabbed on the way out is NOT the big box of tax stuff, but just random family papers. Spends almost FORTY-FIVE minutes here, going through the same wrong pile over and again while apologizing for grabbing the wrong box. I just got rid of the guy. It's OK to kill this client. Yes? (Or at least, hike his bill WAY up!)

And, she may need a new backhoe before this season ends if we all send our PITAs to her....

Deb: Good job. They can't even lie right... "Called several CPA's and the IRS!" Yeah, RIGHT. Tax Pro Today newsletter lists preparer's every week doing exactly what the other preparer did here. You brought the voice of reason and what is right. They left, Good. And those Schedule C's were garbage anyway. Always a Loss? But they have money to "loan" the biz? Right. Sheesh. Rich

Yes, the other piece is most definitely that they would have thrown YOU under the bus - instantly and without a qualm - when (not if) the IRS questioned the prior-years when compared to the new year. None of us need that level of headache.

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

And what do you bet the questioning agent is non-compliant in his/her own tax returns? Just sayin' is all. huh...

Deb...you definitely did the right thing. I wouldn't give it a second thought. Her intentions were very clear. Good for you for sticking to professional and ethical morals.

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

Tom, if the mother had been the one hiring the child I would agree with you 100%. But the way i read the OP, the salon owner that the mother rented her booth from was the one that hired the child. Only the parent can hire the child without social security and medicare tax.

Hang in there, Catherine.

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

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."

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.

I always work through the 8853 which eventually puts it as non taxable. but also most of the ltc insurance policies I have seen reimburse on a per diem ......so just to be safe I put the 8853 in the return

Pub 970 says, and I quote" Don't report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. These aren't taxable distributions. " I would think that if it is unnecessary to report a rollover, it would certainly be unnecessary to report a transfer.

http://www.fingertiptaxfacts.com/index.php

I just *love* this idea!! Anyone know how to start up a Go Fund Me? Rita, is there additional acreage available?

Me too; I've used it, especially on the phone for that quick number. I'll pass this along to my colleagues who put it together.

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.

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.

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.

What???? Don't sell yourself or your talents short, Jack. We all bring something of value to the party, and that and each of our willingness to help fellow members is a big part of what I love about the group.

The bad choice by the hairstylist was to not "hire" her child (speaking strictly from a federal tax and federal PR tax perspective). Children under 18 are exempt from Federal PR Taxes. Had the mother put the kid on Payroll, sent the kid a W2 (which would have taken just slightly longer than producing the 1099), the child would not have SE tax and the mother would not have PR tax expense either. But the mother would get the deduction for the amount paid, and the child could file a return with no tax liability. Each State has their own laws about WC and child labor, so I am not going there in this analysis. The OP would have to look at those implications. Then the Roth IRA would have been a great choice for the kid to put the money into. Tom Newark, CA

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.

I agree with you completely. Loans to the business are not income just as the payback of a loan is not an expense. The numbers to maximize EIC are just too "convenient" to make the inclusion just an oversight on the former preparer's part.

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.!

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.

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'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.

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.

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.

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...

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

Happy Birthday..Gwen...

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