Leaderboard

I think you would need to prepare the 3115 because this spans so many years. If the depreciation that was missed was for the first year in service and caught before the second year is filed, it is possible to simply file an amended return for the first year to start the depreciation and carry on from there, however, once 2 years have passed without taking the depreciation, it is my understanding that that establishes the method (lack of) as an impermissible method and requires the form 3115 to correct that. Plus, there is the potential for missed elections during those prior years, or again the lack of elections, that you'll have to consider. As far as not having the balance sheet, M-1 or M-2, are you sure that the net assets after the accumulated depreciation deductions would still be over one million? Are the revenues over $250K that would require those schedules regardless of asset value? A few other thoughts come to mind on this too: First is that you will also have to calculate and show the AMT depreciation also so that the IRS will know that the effects of any AMT have been taken into account. Second, I'd be very careful with any amendments since you said that your predecessor was in big trouble to the point of his computers being seized. When you prepare an amended return, you are signing with the jurat stating that to the best of your knowledge and belief, that the return is true, correct and accurate. This is the reason that many preparers will not amend a return that was not originally prepared by them. Third, without having all of the returns affected by the lack of depreciation, are you sure that there weren't, or aren't going to be PALs in any of those prior years at the individual level? Fourth, with this being a partnership, unless this is a joint venture with a spouse, are you also handling the other partner(s) returns too, and do you have those returns? This could be very messy and at the very least time consuming, so make sure you really want to be involved in this. I'd make sure to have a solid engagement letter and consider getting a retainer up front.

You really have to wait for the IRS to make changes before you can file current returns, because those changes will affect at least capital and partner's basis. Or, if you can't wait for the IRS changes, file knowing you will have to amend. And for years the IRS changes, you could respond and add depreciation and any other changes you know need to be made, so you wouldn't want to do a 3115 to include all the depreciation. It's a mess!

Everyone of my clients who owed the penalty and paid it by the due date have received a bill. You have to call and have them move the payment over. A royal mess!

Over the years, I have fired more than one client when I became convinced that the information I was getting could not be trusted. I am NOT saying these clients were crooks! Some of them were in over their heads but refused help; others just overwhelmed. Also computer crashes with no backups, shaky paper records, and no time/unwilling to take time to re-create. We've all seen multiple reasons. (And the ones you just don't trust - the ones where you count the toner cartridges when they leave.) You are putting your professional reputation at risk, and taking a chance on nasty preparer penalties. If you decide to take it on, get a BIG retainer, start from scratch with original records, and work your way forwards. You might also work with a tax attorney from the start (getting them to hire you to do returns gives *you* privilege as well as protects you; your work will be submitted under the attorney's aegis). If the prior preparer's machines were seized, starting with an attorney might be a good move even if all the records are pristine. If they went after the preparer, they are going to scrutinize the returns he prepared.

We almost exclusively deal with charge cards. We have shopped around many times over the years. Currently, we use the service available through Costco. Fees are reasonable, service is excellent. The main issue for volume card acceptance is not what the processor advertises as their rate, but the fact that many affinity cards cost much more (the high rewards from some cards are not free, the merchant has to pay, which actually affects those not using a high reward card). For a volunteer group I am a part of, we use a smart phone reader. Since it is not high volume, not all the time, the fees are reasonable enough to tolerate. Ignoring the per transaction fee, since they are fairly fixed: Since some cards can be processed at less than 2%, and some are more than 3%, services like PayPal can be profitable charging just under 3%. For lower volume, this is the way to go, so your cost is predictable. For high volume, using a service which accounts for and charges based on the card is the cheapest, but takes some getting used to, to avoid thinking they are overcharging you on some items. The difference in charge card fees is why brick and mortar stores always default to debit (if you have a combined card).

Just got of the phone with the IRS, everything is fine, agent said notices are generated automatically etc....

So the client has no accounting software? In other words, no books? Send 'em packing. Not worth the trouble.

No way I'd take this on. I'd send to a tax attorney specialist.

This one. Right here. Nailed it. I don't know how I'd ever be confident that I could arrive at a correct return. I would assume other things were missed besides depreciation, and I'm thinking they helped the taxpayer, not the IRS. I don't think they seize computers because your clients overpaid their taxes. I think I'd have to start from scratch. And if the taxpayer can only come up with two tax returns, well, scratch seems unlikely.

When we switched to direct deposit, we just moved the cutoff date back from Thursday to Wednesday so direct deposit could happen on a Friday. No big deal. One pay period was just 13 days instead of 14.

I'm with Jack on this one. Square is great! I have never had a problem and they are very generous with their hardware. I have several swipers including the one that is used for the chip cards. Money is usually in my account the next day. Never ever had an issue. Paypal on the otherhand, well I don't want to go into it right now, but if they were the only ones out there I would never use them. We did not part on good terms! I won in the end, but they lost in the long run!

There was a post few months back where preparer allowed to use office address for client and somehow client failed and IRS put lien on preparer house. I will never allow anyone to use my address. I do have foreign clients and option is use foreign address, PO Box or direct deposit. If they fail or USPS fail, not my problem.

Yes they do !

One crucial question before your final decision to take this client: do you have a nice big desk with a goodly and comfy space underneath it? Big enough to hide in for a while, with your jumbo-sized bag of Skittles (or snack of choice), when it gets overwhelming? If not, refuse the engagement!

No, I didn't file 2010-2012 - yet. Honestly I didn't think it would matter but, you are correct, it might. There won't be any refund coming and so sad she is losing out on so much money but it wouldn't hurt to just mail them in, I guess. She doesn't have the W-2 from 2010, though, so not sure about filing without it. Thanks for the suggestion!

Just nosy --- Did you file the 2010 and up returns so the statute of limitations applies? Yes, there may be no money consequences BUT maybe something in her upcoming VISA and of course Green Card requirements. With things as they are today, all T's corssed and I's dotted.

Good luck.

What's happening is the employer is submitting the direct deposit on Friday which usually takes 2 to 3 business days, the ideal thing to do is to process the payroll for direct deposit by Tuesday or Wednesday prior to Friday pay date. Since we are on the subject of direct deposit, a client of mine employee told him, if he didn't pay him via direct deposit, the bank was going to freeze his account, my client called me all scared and asked me what can we do, I told him more then likely this is a lie and have your employees' bank call me. This was about 5 months ago and I am still waiting for them to call me.

Margaret, In most post offices, they will have a general PO box address to hold mail until someone picks it up. Need to go to PO and set it up with them. Hope this helps. Elrod

Square is the only way to go. PERIOD.

I use square . When a remote client wants to pay via credit card I have square send an invoice directly to the client. I think the fee for that is the same as a swiped charge.

For the few that I do, I use ProPay. (This is not to be mistaken for PayPal).

A client with LOTS of transactions (inn & restaurant) shopped around. The lower the price, the worse the customer service. She went with lower price. Her daughter (bakery) compromised to include better service for reports for sales tax and phone help. Not sure about either one, but they have small local PA banks, so not much good comparing them. My point is that you need to shop around. Contact everyone and give them your typical pattern and have the salespeople work for your business by pricing out what they have to offer you. Start with your bank for help and recommendations. I don't have a lot of transactions, so I use Intuit (ProAdvisor saves me monthly fees, so just the transaction costs) and have PayPal on my website also.

You might want to talk to your bank and see if they have someone they recommend. Or at least will play nicely with. Silly to do tons of research and decide, say, on the Verifone product - only to find that your bank doesn't accept payments from them.

Sounds like one of the smart phone swipey options will work well for you, then. PayPal, Square, Capital One's SparkPay, QB's GoPayment, PayWare Mobile from Verifone, Chase Mobile Checkout, and SwipeSimple are some of those out there.