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Had a client that swore up and down that their original documents were not in the envelope with the return. I looked all over , could not find them, and agreed to pay for a year of Life Lock to placate her. A couple weeks later I ran into her at a store and she tells me "Guess what, I found the documents. My husband had taken them out the envelope and filed them away." Never apologized or offered to re-pay me for the Life Lock. Next year I charged her double and had her sign a receipt when I returned everything to her. Didn't come back after that!

I got my day off to such a good start today (not), when I went to compile a finished return, and the client’s original forms weren’t in her file. I always clip the originals with a green or blue paperclip, so they're obvious when I'm ready to mail everything back to them. This morning I started to compile, and the originals were nowhere to be found. 10 minutes of pure panic as I flipped through all my other open return files, and was thinking “OMG, what if I mailed them back to someone else??!” Finally I remembered - oh yeah, she was the one who came in super early and completely unprepared, and had to email me all her forms. I never had any originals! Whew!

I think that comes under the heading of "good riddance!"

Me, too. BUT - just now phoned them. Rep says it's not you; that it's their (ATX) error, that everybody will get that message, they are working on it, and should be cleared up in a day or two (hope the part about clearing it soon up is right). Didn't say if it had any effect on anything, but I'm not sending any morer efiles 'til they say it has gone away for good.

Oh man, I've "lost" many an item to the copier! I don't do on-the-spot returns, so they leave everything. But this is the first time I've had a scare like that - unless I've blocked the memory of it happening before, lol.

These memories stay with us, trust me!

My gal had some obscure document with withholding that I'd copied, so I had a copy to put in client's folder with her return. And, I'd scanned, so I had it electronically and could keep with 8879 electronically; although, I still do that with paper. She was actually in my office and replaced each of her papers in her own files (from home) the way she wanted to store them. But, I couldn't find the original what with her taking each document out of my hands to replace in her own filing system. She's a huge worrier, so I was definitely panicked knowing a piece of paper had to be somewhere in my office. I tried to stay calm and gave her the paper copy as if it was her original. She seemed to buy that and left happy. But, I tore the office (just one room in my house) apart the rest of the day. I printed from my scan to keep with her paper 8879. I didn't find her original until I used the copier days or more later. I find it hard to stay organized with the client sitting here moving papers around. I have an L-shaped desk and usually move papers from in front of the client and me as we discuss them, or in rare cases actually prepare the return, to the leg of the L AWAY from the client; but she takes each of her documents back into her briefcase. In her case, it was TWO clients; two cousins always come together to get their taxes prepared, because only one has all the documents organized for each of them, the organizer being the worrier. All's well that ends well.

This is why we scan all the documents as soon as they are received. If they're ever lost, we still have them electronically, but we've never lost any that I know of. We put them in a clear plastic expanding folders with a sticky note with the client's name and log #. Then match the records up with the return when assembled. But I love my out of state clients that are totally paperless, both ways.

A gift tax return must be filed. I don't know what state the clients are in, but some state tax departments are meticulous about checking public real estate transaction records for such things. They don't want to let people get away with gifting their homes and then qualifying for Title 19 when they need nursing home care.

https://www.agweb.com/article/farmer-refuses-roll-rips-lid-irs-behavior?fbclid=IwAR2D_7e-yxO0pY83xuCHYYI2ik26keo240Ur1YnTkf8qlIWb9knveTOyv9Y

I can't help, Catherine. I have one client, an NP Anesthetist, who does some of that but does it on a regular enough basis that we have always treated it as SE income. I would tend to agree with your thinking from a logical standpoint, but logic does not always have much to do with taxes. On the other hand, if he is an expert in this field I would suspect that it at least relates to the way he makes his living and could therefore be considered an extension of that and be the reason that IRS considers it subject to SE.

Would it be useful to include a link at the top of this site to the Official ATX Community/Forum/Board/whatever they call it? If so, what do they call it, so I can label the link properly at the top of the site?

A male duck is a drake...Drake software.

or hit the nominee button for code.

The banker should be sued by the farmer. They knew the requirements of the law and put the farmer in harm's way by intentionally circumventing the law, and asking the farmer (unknowingly) to do the same. I deal with this issue every day in my day job. We go through annual training on Anti-Money Laundering and the Bank Secrecy Act. Every bank teller is required to go through the training as well. They knew what they were telling the customer was against the law, and they should be held responsible for their actions. It caused that man harm. Getting down from my lofty tower now. Tom Modesto, CA

What the beaurocrats at the IRS & DOJ was one of the most egregious things done against American citizens since the internment of Japanese-Americans in WWII. But is not without precent with the IRS. Prior to the Tapayers Bill of Rights (1999?), the IRS threatened and harassed taxpayers who were delinquent in paying their taxes. Even elderly people had their homes seized, Calls were made in the middle of the night, auditors threatened and lied to people using soviet style tactics. Beaurocratic abuse is not confined to the IRS, EPA overreached on the Inland Waterways act and threatened $10,000/day fines to farmers who had draainage ditches, or ponds the EPA inspectors claimed came under their purview. I am sure that there have been many other abuses.

If one sees what it takes to qualify as an expert witness, I think there is only one conclusion - SE income, even if it is only one time. It is much the same as authoring a book. If it is a carpenter writing one time about bee keeping, it is ordinary income. But, if the one time book is about building a house, it is SE income. https://www.journalofaccountancy.com/issues/2004/oct/soyouwanttobeanexpertwitness.html

We've all been there! I had a missing document from a very nervous lady. Luckily, she was also a bit overwhelmed putting her documents back where she wanted them as I finished with each one. After she left, I was checking everything I'd ever done in case I stapled her document to someone else's and, of course, worried that I'd actually SENT it to someone else. Days or weeks later I found her document when I opened the top of my copier; it was on the glass. I don't copy much anymore, now that I scan a lot and lots of clients upload to my portal. Huge relief.

Whew indeed! I had something similar a few years ago, except I did have originals, and only ONE form was missing. Turned out it had fallen behind the file cabinet (still don't know HOW it could have gotten there, since it should have been with its fellow forms and not on the file cabinet), and let me tell you it was FUN (not!) fishing it out. But man oh man was I frantic trying to find it. Finally remembered hearing something fall the day before but saw nothing when I looked, and started looking behind things. It's an extremely upsetting thing to happen! Glad you figured it out.

You're right. One spouse can't itemize while the other takes the standard. Don't know what I was thinking. I once asked some IRS agents who were students in one of my classes if the IRS actually checks to see if both spouses itemized or not, and they all did a good job of beating around the bush.

Gift of over 15,000. gift tax return needs to be filed. Her basis is fathers basis plus any gift tax paid. Now is the time to hunt down the fathers basis.

Hobby income.

it is addressed in the news report on your program. only effects banking products.

It's not you. See the topic in General Chat called "Efile Error Notice" talking about the same error.

I don't use ATX, but I do get warnings if a line wasn't computed. Sometimes, I forgot to label an entry T/S instead of J. But, sometimes it's telling me I have to compute that line. You do have to review the form. Do you know that T made all the payments on a J mortgage, for instance? Or, how can it assign the prior year CGCL without knowing whose investments generated the gain? You're the tax adviser and the tax preparer. If you know the state(s) well on that return, you know when the federal results warrant looking at the state(s). With CT only, I seldom need to look very hard. For multi-state returns, especially including states like NY or CA that decoupled from federal law, I've done almost everything from printing a MFJ state copy (after I've completed the federal split for reference) and making margin notes plus checking the tax brackets all the way up to preparing the MFS states in my software completely before offering my clients the results and my fees, so they can make a fully-informed decision. My software always includes the MFJ vs MFS. For the vast majority of my clients, it's overwhelmingly MFJ by thousands or tens of thousands of dollars, so I don't even look at CT or even NY unless my client has asked for a complete analysis. You get a feel for what tweaks you can and can't make to federal, what could change your state(s), how big the difference needs to be so you can charge for your work, etc. Review a few MFJ vs MFS forms to get a feel for how to work with them. Then look at your home state to see how much of a difference it can make, or not.

Thanks for the feedback everyone, it's been added

It's called "ATX Online Communities." That link would be helpful because they don't make it easy to get to it when you log in. Makes me think they want you to look at everything else they have to offer before you finally hit the right buttons. Thanks Eric.

I think the IRS is waaay too understaffed to check that, and a lot of other things. But, WE all check. It's also mid-February, so we're all overwhelmed right now. I asked because I was genuinely worried that I missed something new in the SECURE Act, or whatever; wasn't trying to call you out. (It just sunk into my head today that we can/have to compute kiddie tax under the TCJA rules AND under the SECURE rules to see which is best for each client. Luckily, my kiddies haven't come in, yet.)

That field would be to enter the code section under which the asset is being amortized. Example - sec 197 for amortization of goodwill, sec 248 for organizational costs, etc.

MFS doesn't work in CA for lowering student loan payments very often because it is a joint property state so you have to split the income equally.

Well, his early-onset Alzheimer's doesn't show up as a rare disease. However, wife's check was definitely for driving him back and forth to another town for the trial, and no 1099, so I think her money is not taxable. And, husband's check is for the exact same amount as wife's, so maybe also for travel time. At least I know what type of questions to ask wife and, of course, for any documents, contract, whatever paperwork they signed or received for participating in the clinical trial from which they received stipends. She is organized and keeps everything do do with money (she's self-employed and they have a partnership and two kids that work). The odd amount of $748 each suggests mileage reimbursements -- I hope! Thanx, all.

Lion, to get back on track. If the payments were considered reimbursement for travel expenses rather than payment for participation, then they are not taxable. If the participant in the study has a "rare" disease, then under the Ensuring Access to Clinical Trials act of 2015, they may not be taxable. I found this article that may help you to find further information: https://forteresearch.com/news/payments-to-research-subjects-what-is-taxable-income/

Every MFS return I've done ended up with me getting yelled at eventually because they wanted it, didn't want to pay me and didn't consider the long term ramifications for why they were doing it. In one case the husband made a TON of money and wanted to avoid paying his student loans but when the wife found out she was P.O.ed because the loans were the excuse for why they didn't have kids. If I were a betting man I'd bet they are divorced by now.

If can always buy some deer balls afterwards, they are under a buck.

It's SE taxable if he does it a 2nd time.

at ILLMAS' youtube!

Those messages on email have very little legal impact. The receiver didn't agree to anything so they aren't impacted by it. They do work to remind recipients a copyright may exist, that client privilege may exist and to maybe remind recipients that nothing in email should be viewed as a legal contract. They do zero to aid you in limiting liability because the recipient didn't agree to this when they opened the email. You have to force them to waive this legal right before they open it if you want to take it from them.

I ended up testing for sure my bcc to myself then wrote a brief apology explaining that I was testing my email system to announce the portal and inadvertently addressed to all. No comments back except that one client really liked the portal and found it easy to use! I think it's over, lesson learned. Thanks for input, all.

I've never done a MFS, except for those occasional couples who keep everything separate, usually very rich, so I don't need a program to split it. Besides, I could split most returns in less than 20 minutes, and, as long as I'm getting paid for that, I'm good.

We're actually seeing more returns that do better with MFS. Younger couples with student loans, where the loan repayment amount is calculated on income, for one. Filing separately the couple has a much lower annual payment required than when they file jointly. (Yes, then they'll re-pay for longer - they can always pre-pay, and for a lot of these younger couples, cash flow is the driving force.) Older couples with medical expenses higher for one person sometimes do better MFS. Luckily with Drake it really is a click of a button (and some care, later, to make sure you are opening the right returns) to split them and get a comparison - although it's not perfect, as some of the little credits, like retirement savings credit, don't calculate properly on the one-click first pass.

What I do is duplicate the return and make all the adjustments. Makes it fairly easy not having to input all the info twice.

He would have probably gotten away with it if he hadn't tried to marry that good-looking golden retriever who lived in the house down the street.