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Has this happened to anyone? A man goes to see his doctor to complain about some knee pain he's been having, the doctor tells the him, your left knee hurts because of age, the man replies, BS my right knee is the same age as the left knee

I recently had to have a brain MRI to see if it is contributing to a genetic cardiac issue they recently discovered I have. The neurologist told me my brain is in pretty good shape but he said (pointing at the picture), "As you can see, it's shrinking a little bit." Then he added, "Don't worry. That happens to everyone when they get old." To which I muttered (under my breath), "Thirty-something turkey!" I guess when I was in my 30s I thought 62 was old, too. Still....arrghhh!!!

I'm not advocating skipping out on your obligations, and I realize Jack's client has a special case. My daughter is in grad school, I am paying for it, along with the Nashville rent. She has classmates who owe 2 1/2 times what tuition and rent have cost me. They are paying living expenses and maybe living it up expenses with loans. My daughter says they should be whipped. She's a hugger too.

I can understand a Financial Advisor/broker role here, but in the instant case, those funds are under control and safe. IT is the management of the Rentals that is causing all the grief here. I had something similar. Though the client was lucid, and getting buried in paper, she really did not want the help. Some folks, no matter what, do NOT want to admit that they may be messed up... I offered to come by the house and help sort stuff, or even one of my lower cost staff members. No. There are appropriate ways to bring in support. But you can lead a horse to water... Rich

The son of one of my former clients accumulated $ 300,000 going thru Med School.

New on IRS.gov Form 14039, Identity Theft Affidavit Inst. 8974, Instructions for Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities Form 8655, Reporting Agent Authorization Form 941, Employer's Quarterly Federal Tax Return Form 941 (Schedule R), Allocation Schedule for Aggregate Form 941 Filers Inst. 941-SS, Instructions for Form 941-SS, Employer's Quarterly Federal Tax Return – American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands Form 941-SS, Employer's Quarterly Federal Tax Return – American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands Pub. 5146, Employment Tax Returns: Examinations and Appeal Rights Form 14039 (SP), Identity Theft Affidavit (Spanish version) Pub. 1281, Backup Withholding for Missing and Incorrect Name/TINs (including instructions for reading tape cartridges and CD/DVD formats) Back to Top 2. New Fax Number for Form 8655 There’s a new fax number for Form 8655, Reporting Agent Authorization. The new fax number is 855-214-7523. As a reminder, don’t send more than 25 forms in a single transmission when faxing Forms 8655. And if possible, send faxes directly from your computer instead of from a traditional fax machine

Oh. I thought we were bashing the specialty niche of those who pay bills for elderly clients. Hugely helpful to their clients but the liability gives me the willies. For financial advisors - I know some really good ones. Completely outnumbered by the ones who need Rita's back yard post-hugging.

How on earth did anyone accumulate over $400k in student loan debt? I never thought it was possible to even borrow that much. She must have gotten one heck of an education, so try asking her to interpret the IRC! I agree that the debt is taxable but insolvency might erase some of it. We were only told her income, not her assets.

My client brought me these cute little pictures that she had made from looking at our three cats. It made my day. She did tell me that I looked exhausted and my eyes were really puffy. I am really feeling my age these days. I do love most of my clients, some need to make a trip to Rita's yard.

I need you to introduce your daughter to my son. He went through 5 years of college and never touched a loan or his college savings we put away for him. Wants to go on to get a masters degree but won't start until he has the funds saved. Sounds like the two of them had great parents teaching them about money. But don't let her hug him. Tom Newark, CA

Have you heard the joke about the interesting tax accountant? A couple was getting divorce and they both agreed who ever gets more money from the divorce gets to keep the kids, the attorney now has two additional kids.

I know someone that knows someone that used students loan monies to shop at Victoria Secrets and coach.

In case anyone wants to listen to my radio show interview yesterday (on the US Constitution, not taxes), drop me a PM and I'll send you the link. WLJA radio in Ohio had me as a guest.

Yeah, if Sara's lady doesn't want to part with a 2012 1040-ES voucher, well, in the words of a country song, "You can push me in, but you cain't hold me under."

Good point.

One of my Doctor clients was interviewing potential new Doctors to join the practice. One of the questions he asks is: "How much Student loan debt do you have?" And it is not unusual for him to hear $200-300K. The winner was $463K. The only thing that works for your client in insolvency. If not, she just exchanged student loan debt for a tax debt. Rich

Awwwww!!!!!

Love those. That was really sweet of her.

Jack, I agree with you that this is taxable income. The only carve-out for not being taxable income is for loans forgiven under 108(f) where the student works in certain professions or classes of employer for a designated period of time, or for certain refinancings, and obviously these aren't the case with your client. One of those is the link that ILLMAS provided. I would treat this as any other cancellation of debt that is taxable AND has the potential for exclusion under the rules in sec 108(a) to the extent the person is insolvent. Do the worksheets to determine the involvency and go from there. In other words, treat it like any other 1099C and include the student loan debt in the liabilities on the worksheet. Found this on the Nelnet website related to Student Aid, says it's an Office of the U.S. Dept of Education. Re: cancellations due to Total and Permanent Disability: A notation in the U.S. Federal Register, 2012, Title 34 for Dept of Education, on pg 4 of the linked pdf, righthand column, says : "The treatment of loan amounts discharged based on the borrower’s TPD as income for Federal tax purposes is governed by the Federal tax code, not the HEA." Again, the IRC addresses only those discharged under 108(f), and makes no mention of discharge for TPD as an exclusion.

https://cpawilmingtonnc.org/cancelled-debt-cpa-discusses-tax-consequences-of-student-loan-forgiveness-cancellation-and-discharge-insolvency-form-982-and-form-1099-c-from-92-instructions-form-1099-c-instructions/

I cannot find ANY exclusion from income for student loan debt. However, any inclusion of income is dependent upon insolvency. So do that worksheet (balance sheet, really).

The instructions don't say anything about student loan. It only says if you are insolvent. Is he? Line 1b The insolvency exclusion doesn’t apply to any discharge that occurs in a title 11 case. It also doesn’t apply to a discharge of qualified principal residence indebtedness (see the instructions for line 1e on page 4) unless you elect to have the insolvency exclusion apply instead of the exclusion for qualified principal residence indebtedness. Check the box on line 1b if the discharge of indebtedness occurred while you were insolvent. You were insolvent to the extent that your liabilities exceeded the fair market value (FMV) of your assets immediately before the discharge. For details and a worksheet to help calculate insolvency, see Pub. 4681. Example. You were released from your obligation to pay your credit card debt in the amount of $5,000. The FMV of your total assets immediately before the discharge was $7,000 and your liabilities were $10,000. You were insolvent to the extent of $3,000 ($10,000 of total liabilities minus $7,000 of total assets). Check the box on line 1b and include $3,000 on line 2.

Exactly what I was doing thru the school zone.

Yesterday was just brutal. It's like a huge crash this year. I had seven sales tax returns to do and the great State of TN has revamped their site and made it far more difficult and illogical than ever. Put out a few other fires. Went to dentist, where a very pretty and annoying young lady walked in like she owned the place, wanted them to fit her in even though she was supposed to be in the office of another dentist named Darryl in another town. All I could think was: "This is our April clients. They are everywhere." Then I went home, driving thru one red light, then a school zone where the friendly cop had his hand up waving at me and even blew his whistle. So sweet.

Hey, JohnH. Next time you want to pay someone $1000 to take a client, I'll do it! In fact, I'll take a couple of them!

Yes, that IS a good point. But she'll take Door #2.

Many financial advisors sign off on a fiduciary agreement with the client. The lack of knowledge on the issue is silly. Comparing a professional advisor to a salesperson at Northwestern or Ameriprise is like comparing a professional tax planner to the person at Liberty Tax who took a 3 week class.

Yes, I have met a few whom I believed deserved the trust placed in them. But they are overshadowed by the vast majority who place their own interests above that of their clients. Commissions & fees are the major force driving their decisions and investment "advice". Far from being irrelevant, they are very relevant in a negative sort of way - they are a danger to their client's financial well-being. Miserable track records and highly dubious investments abound. But they can always be counted upon to have all the proper signatures on the CYA forms.

I also have a client that accumulated ~ $400K in debt going through undergrad, medical school, then double majors in specialties.

You can check the box on 1040x. It has two boxes, one for yes and one for no. A one sentence explanation as well might help.

Put up a sign outside saying we're gone 'til sometime next month-same for voicemail. It's every taxpayer for himself. Beat/dead - it's gonna take some dayyys to lie prostrate & unstress, Can't remember when's the last time I got zonked-out, but thinking about popping the cork on that fifth of the grape somebody Xmased me last year (it's white and I like red, but what the hey-nothing else went my way this year).

Don't know if this in any way eases the pain, but here's my experience. Over the years, I've had one or two ex-clients whom I would have gladly PAID someone $1,000 to insure I never heard from them again. One situation did involve a new wife who obviously knew more about this business than I did (at least according to her).

One of the first things I was taught is there is no such thing as an accounting emergency. I like to revisit that item often. If needed, I take a vacation anytime. Could be 10 minutes, a day, whatever. If I am in a state where I need time off, I am not my best for clients.

My vacation is next month so I've started my CE as of yesterday! Will have my 24 hour certificate BEFORE I get on that plane.

Yep, Drake hasn't had a price increase in a long, long while. And the program, although excellent as it is, continues to get better and better. But as far as prince increases are concerned, I keep raising my fees each year. One purpose of being in business is not only to earn salary/wages, but also to make a PROFIT.

I have had some small success in refusing to provide information to a *new* accountant until I have been paid. And one client contacted me after several years needing some crucial document and hoping I had a copy. I did - but would not look for it (anything that old was in deep storage) until she paid up. Paypal payment within the hour, and I found her stuff that evening. We were both thrilled.

Rock and a hard place, Jack. ES didn't give the worman any work product, and is required to give back the original documents, if asked. It is an ethical violation for CPAs to hostage a client's original records for a fee. ES, I'd let it go and never do business for this family again. Others here have laid out the path if you decide to try to collect, but I think you may rack up more in aggravation that it may be worth.

Forget it. They won't pay you unless you go to court--and attorney fees would be at least $1000

A struggling lawyer told his wife that he just wasn't making much money and if things didn't turn around soon they were going to move somewhere else. Six months later a second lawyer moved into their community. A year later both layers were the richest people in town. .

Let's be honest and realize that when you inform them that 2014 is a requirement, they WILL pack up and go to the next preparer and fail to mention 2014. I would inform the potential client that when a refund request for 2015 shows up, the IRS will run a tax return without any deductions for 2014 and assess them a tax owed far higher than your return will generate. Inform them that at that time, fixing their error will cost significantly more than doing an original return.

We prepare the returns. If they choose to send in or not is up to them. They will get the notice when the IRS sees the missing year....eventually. No filing, no statute of limitations. They can pay a bunch more when you have to help them set up the payment plan in the future and try to get all the penalties abated. Tom Newark, CA

Maybe even the Barber charges less... She should ask him.

I think the lawyers always get the most money. Had a client who constantly asked me legal questions, and I'd tell her to ask her lawyer. She said he charges a lot more than I do!

Very Handsome children, though! ...............