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A father puts his young daughter to bed every night and loves listening to her say her prayers. One night she says "God bless Mommy, Daddy, Grandma, and goodbye grandpa." The next day grandpa dies. Father thinks, that's weird. The next night the little girl says "God bless Mommy, Daddy, and goodbye Grandma." Next day grandma dies. Father is shocked and thinks he has a psychic daughter. The third night she says "God bless Mommy and goodbye Daddy." Holy Cow! he thinks. The next day he is careful driving to work and stays in his office watching the clock until it hits midnight, he made it through the day. So he goes home and tells his wife he had a rough day trying to stay alive, she says, "you think you had a bad day, my tennis pro died today!"

Yes. Great question. I'm looking at a CP2000 right now and under "Next Steps" it says, "If you are making other changes, we recommend you file an amended return (Form 1040X), write 'CP2000' on the top of and attach it behind your completed Response form." I have read a lot of discussions where tax pros were unbending on the never file a 1040X in response to a CP2000. I am convinced there are times that it is absolutely necessary, and if it causes more work for IRS that is absolutely not my concern. I'm not going to try explain changes and hope they figure the tax correctly. No way. Plus I either have to do a 1040X or redo the return to know what the tax is myself. Might as well show IRS and not be sitting around for months hoping for the best.

Why does the letter say send 1040X and write 'CP2000' on top?

I made a mistake. I listened to a Vi Hart YouTube video on the decimal .9999.... = 1 issue (which was fun). But then she mentioned split octonians, which are eight-dimensional algebraic expressions. And I looked them up. Hence the mistake. the Wikipedia article is strange; all the *words* are in English, but they don't make any sense. Kinda like portions of the IRC, except these have a point (UN-like the IRC, frankly, too often) because they describe sophisticated wave equations. Here's the link: Split octonians and here's the first paragraph: "In mathematics, the split-octonions are an 8-dimensional nonassociative algebra over the real numbers. Unlike the standard octonions, they contain non-zero elements which are non-invertible. Also the signatures of their quadratic forms differ: the split-octonions have a split-signature (4,4) whereas the octonions have a positive-definite signature (8,0). Up to isomorphism, the octonions and the split-octonions are the only two octonion algebras over the real numbers. There are corresponding split octonion algebras over any field F." Umm... I'm really glad they included that bit about isomorphism, 'cuz that just helped SO much. Not.

Things I learned today about IRS AUR (most common: CP2000 notices): 1. Better to fax responses unless a huge stack of paperwork is involved. The response goes directly to an agent for processing instead of sitting in the mail. 2. IRS is "working" on a way to match K-1 forms. I got the impression that, as of today, IRS does not match K-1s. 3. Always best to provide a statement for any amount listed on line 21, showing each payor EIN and each amount separately. If IRS can exactly match an amount to a 1099, it won't issue a CP2000. 4. Better to call Practioner Priority Line and select Option 5 to be connected to AUR section. Those calls are routed to the front of the line, so less wait time. 5. Never send an amended tax return in response to a CP2000. AUR does not process amended tax returns, and it just muddies the waters. I think I've read questions regarding the above, and thought I'd share with you

A tax pro who is also a lawyer and who specializes in bankruptcy and OIC's was asked how he dealt with clients who come back every 7-8 years with the same bleeping problem. He said the trick is to stop thinking of them as "problem clients" and instead think of them as "walking annuities" - which seems a little cold-blooded, but also both funny and accurate.

Agreed that although CPAacademy.com has most presenters there with a sales motive; most give good information and just mention sales. The information is timely and as you said free. IRS also uses CPAacademy.com to share their information and webinars with the only difference is CPAacademy.com is not allowed to record the IRS webinars for later playback (the others are usually archived for use later if desired). Here is another place for CE's for all from CPA's, EA's and we lowly AFSP folks. They are reasonable and even have different "specials" during the year. The self study is extremely welcome as I need a lot of breaks at times. Please contact Platinum Professional Services at 877 315-1772 or email us at [email protected] if you have any questions. By the way, here is a "special" just received: The promo code Celebration is valid from Wednesday, July 26th, 2017 at 10pm PST and expires Thursday, July 27th, 2017 at 10pm, PST. Offer good for one course per customer. No refunds given on prior orders. This offer is not applicable on already discounted group orders and promo codes can not be combined. Please note: offer is not valid on Yaeger's CPA review course.

In case y'all didn't think I was weird enough, and have been wondering what sort of things I do in my spare time...

I thought CP stands for Civil Penalty. The presenter was a dud but I liked a lot of the info. And, you are sooooo right about the actual "AUR Experience" being less than the rosy picture he painted.

I listened to the same lecture this morning and I resent the IRS rep who spoke as if the IRS is faultless. I have a case going on over a YEAR, where responding to their notices and sending cover letter explanations and details gets you no place. The person at the other end doesn't bother contacting you - whatever they don't change or reconcile goes back in the pile to re-send another collection notice. Then when you finally reach AUR unit, you're not given a full explanation - only 1 fact and the process starts all over again. Yes - what he said was true- the sooner you respond to a notice before a deadline - the better the chances are of settling the issue. What's a "Practioner" Priority Line. And by the way folks, the speaker didn't even know the correct line number for Miscellaneous Income, or what CP stands for. (Computer or Code Paragraph).

A dog gave birth to puppies near the road and was cited for littering...

DITTO DITTO

So that's why when I go to someone's home their pictures are crooked. I can't stand crooked pictures or anything else that is crooked for that matter. I wonder if there is a pill for crooked picture people. Wouldn't you just love to have a pill you could take so you wouldn't give a sh@# about anything when needed.

I really don't have time for this Catherine, but after your post I just had to look up isomorphism, And you know where that leads....

Dang, when I saw the title of the post, I thought you were going to ask which QB you should draft in Fantasy. Can't help with that one either. Tom Newark, CA (But moving to Modesto soon)

Here is picture of yesterday's sunset, hope you enjoy it friends. MAS

A tattered piece of rope; mangled-looking and twisted around, walks into a bar. Bartender looks up, glares, and says "Hey! Are you a cord? We don't serve cords in here!" The rope answers, "No, I'm a frayed knot." (Ba-dum-CHA!)

The IRS Wage and Income Transcript includes the payor's FEIN

Saves time and travel costs. I'd be happy to try it. https://www.irs.gov/uac/newsroom/irs-office-of-appeals-pilots-virtual-service

Terry - a few things I've learned over the years concerning clients and Quickbooks include keeping the chart of accounts short and sweet. Lots of clients come to me with pages and pages of accounts on the COA. That makes for lots and lots of opportunities for coding errors, IMHO. But, as long as the QB type is correct (expense, income, asset, liability, equity), the data errors are manageable. I might suggest that you perform your work on a monthly or quarterly basis since this also has worked better. The bookkeeper will probably be able to ask and answer questions as the issues are more recent than looking back annually. Also, I don't think trying to force QB to a strict tax accounting basis is going to work for the reasons you mentioned above. I think you can figure the AAA, etc. from preparing the tax return. Again, I see no benefit to angsting over AAA, OAA, and AEP if the company has always been an SCorp. I have only needed to consider the ordering rules when the shareholder takes distributions in excess of basis, and I keep track of that via the shareholder basis worksheet in Drake. You might be making the bookkeeping in QB a lot more difficult than it needs to be. My own philosophy is that simpler is better. I am a simple woman

@Catherine, Nobody does it better! Except ME!

For the OCD/CDO among us, who want their teeth set on edge with slightly hysterical laughter: 23 photos

Sorry, @Gail in Virginia, I didn't mean to throw a wrench in your scheduling.

Thanks BHoffman. I have done the same thing with the equity accounts. I give instructions to these folks every year after I make all of the necessary adjustments with the hope they will do as I say. More often than not, those directions are not followed. As I look at what they have done so far this year, they are doing the same things. But, I will ask them to go back and fix their errors with instructions on how to do so. I have even done screen shares with these folks to help. Each account in the COA has what it is used for in the description as well. So, as long as they are willing to pay me to fix this each year, then so be it.

" A bit like knowing someone is OCD and making all your pictures crooked before they visit " But if someone was truly OCD he/she would be CDO!!!

The book I recommend for people who think they know about things is Muller, Richard, NOW, The physics of time . It has a lot to say about Feynman, but doesn't explain why I remember Avogadro number, but have never used it on a tax return. Don in Upstate NY BSEE, MSEE, MBA, EA, NCI

Well, you're among friends anyway and, isomorphically speaking, I'd say you're a pretty good ol' gal. Besides, I don't have a thing in the world against those octonians. Here's one of your comrades-in-axioms -- he started out as a kid repairing transistor radios for his neighbors. One of the world's great physicists (and comedians). https://en.wikipedia.org/wiki/Richard_Feynman Read this book (I have and think you'll like it). The used paperbacks are cheap and good. https://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Dstripbooks&field-keywords=RICHARD+FEYNMAN Cheers!

I love that analogy, Catherine! " A bit like knowing someone is OCD and making all your pictures crooked before they visit "

I'm actually loving CPE Academy. The live webinars are usually only an hour, so I can pay full attention instead of dropping off into my own drool after hours and hours. And, they are free! I'm finding them to be interesting and informative. Tomorrow, "Reasonable Compensation for Shareholder Employees of SCorps". It will be fun to see how the presenter determines this.

No problem there, m'dear. We'd start to worry if you said you saw two unicorn flatuses in one day!

Especially the part about using the PPL and knowing how to get to AUR. There is rarely a clean way to get through to them on the letters they send out.

At best.... (Although sometimes I think they use QB as an accountant's torture device. A bit like knowing someone is OCD and making all your pictures crooked before they visit.)

Great information!

Wish I was there..Thanks

Sometimes all we need to do is to write out all the gory details. Putting it all in order sufficient to explain the problem to others can allow our subconscious to shake out the answer that was in there hiding.

That is just GORGEOUS. Thank you!

Guy walks into a bar with a toad stuck to his head. "What happened to you?", asked the bartender. "I dunno", says the toad. "It started out as a wart on my butt!"

Eric....groan.....

I'm here! I would love to be taking CPE, but I'm stuck with payroll taxes, extensions, clients that only file every three years or so, and answering IRS and state letters. This is my worst summer ever for being behind, because I have too much on my personal and work stuff going on. I don't know how people can get letters from the IRS and state and not give them to me or their attorneys for months.