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What I do in a situation like this is I tell the client there will be penalties and interest then I let the IRS calculate the numbers, which I double check of course. This approach lets the IRS be the bad guy, instead of me. Then if I find a mistake, saving the client money, I can be the bearer of good news, sort of.

Thanks Joe/Abby! I *have* to dig out my camera and get my pictures uploaded here.

I'll be keeping my hairdresser. It's very simple, she receives a 1099 from owner, no other financial transactions such as product and rent. Besides, I need her for her mousse recommendations as I don't have the lustrous hair from years ago.

So cool to hear everyone's voice, great job!

Add the NOL Worksheet form and enter prior period NOLs on the NOL Summary Tab. Do the same for AMT NOL Summary.

Great video!!

Awesome!!!

This is one of those areas where a copy of the Audit Techniques Guide can come in handy. Just give a copy of it to the prospective client and tell them "This is what the IRS is going to be looking for if you're audited. I'll be doing your accounting based on this document. Fees will be proportional to the work involved." Then, as LLMAS said, they will probably fire themselves before you ever get started. https://www.irs.gov/pub/irs-utl/cashchapter10_210745.pdf

Isn't that the best thumbnail ever.

My hairdresser will certainly be kept - she's my daughter. Plus she works for a place that employs her, so she gets a W-2 with tips listed. Very few pay cash tips in her shop, and she tracks those.

Try offering monthly accounting to them, collect necessary w9, most likely the client won’t want the service but you tell them you are moving into a different direction. Basically the client will fire themselves.

That's why this year when I met with my clients I gave them the heads up that their refund may not be any higher and warned them of the real possibility of it being less because of the change in withholding and tried my best to explain to them that they are receiving their refund now thru larger take home pay. I know there is still going to be some that don't get it, but those are the same people you find explaining the same thing over and over to them.

I agree with this and think it's a waste of money. The last I read, the IRS was already estimating that implementing the new law would cost the agency in the $400-500 million range, and I'm not sure if this postcard was factored into that. What's more, this has a cascade of affecting the states too where every form and instruction that picks up entries from the federal forms or references any line numbers will all require revisions. In the end, we will all get used to it and learn where everything is, but it will slow my review of returns down slightly in the beginning, and I expect some clients will not like the subschedules.

The worst part for software developers is that they now have to spend time rewriting the basics and will have less time to implement real improvements. This is a solution in search of a problem.

Agree, I once calculated a penalty by the state by a few dollars more and the state said they will not refund the extra money to my client. Another client where I prepared a couple years back never received a bill for some years from the IRS, called to find out the status was told if my client hasn't heard back from the IRS it's all good, client was going to setup a payment plan after the IRS had calculated all the fees.

Sorry, I wasn't trying to post a link. This is the lead item on the council's website, which will pop up if you search.

Do both, send both, have both ready when you call. That way, you will be covered for all possibilities.

Get one with the EIN then and make sure the topic line says payroll taxes and a second line says Civil Penalty. Else you could find yourself able to talk about tax issues but not about penalties. They tend to be super-fussy about those trust fund tax issues.

One of the reasons we always highlight the "This is your total tax" line rather than the refund (or balance due) line. We point it out as "this is what they get to keep" because that's the important part. We call refunds "this is the amount you loaned the feds last year" and balance due is "this is what's left to pay" - always focusing on total tax. We almost never have anyone complain about the refund amount. (The few that do are clueless and we had one this year complain about the "smaller refund" that was several thousand HIGHER!)

I just looked at the proposed new 1040 as well. I shutter to think of the confusion in 2019 with this. I am easing out the door so I have not to many years to wrestle with all these good things .

Wonder if they will like the tax reduction? I suspect many will fail to recognize it, especially if their refund is less than the prior year. That will take some explaining, but I suspect some tax preparers won't bother with the explanation. Some won't explain because they're too busy; others won't explain because they're politically biased.

You wish. Everyone I've ever taken on as a client has never bothered to print out the return, and they ask, 'can't you get a copy?'

To really get a good laugh add the following: 3. What we don't need we will send back.

It is payroll taxes. Tom Modesto, CA

If the issue is with something EIN driven, such as payroll taxes, I would say you would need a POA with the EIN on it.

From the Evangelical Council on Financial Accountability: We are circulating a position statement for nonprofit organizations (including churches) concerned about a provision in the Tax Cuts and Jobs Act that taxes parking benefits provided by many employers. A new provision in the tax law requires tax-exempt nonprofit organizations to file federal income tax returns and pay unrelated business income tax (UBIT) on the cost of parking provided to employees, even if the organizations do not actually conduct any unrelated business activities. The law states that the Treasury Department is to provide guidance on the complex issue of how cost is to be determined for this purpose. In addition to filing federal income tax returns, many nonprofit employers affected by the new law will also be required to file state income tax returns and possibly pay a state income tax as a result of the new federal income tax. By signing onto this position statement, you will be advocating for the repeal of this new burdensome provision in the law...either by legislation or effectively by action of the Treasury Department. The position statement may be used to communicate these concerns to members of Congress and/or Treasury officials. Actually, the TCJA's language also includes, Travel Reimbursements and Meals in addition to some other fringe benefits which would be subject to taxation. The consequences of rushing through a complicated tax bill in a few weeks without a single committee hearing will be coming home to roost for many more months.