Leaderboard

I have some clients who are jerks. Oops, that's a typo. I have some former clients who are jerks.

I've got a note in my calendar for the first week of May to notify a client (1120S and 1040) to find someone else for his 2020 returns. 2019 completed but with too many hassles.

Rita, you don't need help. You already give hugs! Like Tom says...

We know better Rita. Some of us have been to your home and seen how beautiful the garden grows. Who knew hugging was such a good fertilizer. Tom Modesto, CA

This is why I'm not firing the guy. He directs to me about $20k in revenue.

Or, as someone wiser than me once posted here, raise their fee to a level they are no longer jerks. Many people have more money than manners, and it was said the job is to get as much of the former as it takes to ignore the lack of the latter.

"He doesn't make that much money" That you know of. I would not be concerned with that aspect. I watched a hair care person on the news last night, complain about the CARES Act not helping self employed enough. What I "heard" in my head was the CARES Act was not compensating for unreported tips well enough. If you want to rid them, then 10% over the local over charge, as long as you are happy to take the work if they want to stay at their new rate. Could add a JD type structure, billing for all time, against retainer, and when they see the time you really spend, they will clean up, or you will enjoy being paid 15min to leave a phone message.

Or raise their price by some multiple (complication from new laws is always a good generic reason), enough to make you comfortable with their business, then let them decide. I used to be the "fire 'um" type until I took to heart advice from others about there always being a price which I can tolerate something, and sometimes, more PITA customers are more profitable in less time than more average customers.. I have current customers who are not allowed to ask questions (as they abused the offered support). I have some who the software is locked to a specific computer (as they were installing on computers of others, and taking money from others). Some I only accept money orders, with an extra fee added on, as they play the "chargeback" game when they pay by charge card. The second example was the tougher to swallow. Those folks were actual thieves, but I found a way to keep taking their money while preventing their theft. Many years back, some folks figured out how to crack my registration scheme. When I resolved it, I gained customers from those who were stealing, so even theft can bring in customers... I know what they were doing, they know, but I found a way not to have to ask, and yet turn them into revenue.

Yes, US - we're the pros. They don't call taxpayers demanding immediate payment with no letters sent (for months and months and months) first.

Hahaha, yes, this reminded me of my client who came in with her stuff and told me that her husband said to make sure I knew that they wanted the dividends and capital gains distributions on her individual account to be tax deferred. Oh, is that what you want? Ok, good move, savvy investor. I see you're all over it now this fifth year you've had this account and the first year you've opened the envelope before giving it to me.

I thought that that was being implied More precise grammar would be "the tax would only have been deferred". I wasn't trying to say it was deferred.

I had a couple of sharks sitting in my office, and I got so mad, I stood up, slammed my hand on the desk, and said, "Look. Pay me whatever you think is fair and get the F*** OUT OF MY OFFICE!" They silently laid a check on my desk and left without saying a word. My employee sitting at reception... her eyes were as wide as saucers. Felt good. Felt really good. Those sharks soon left town after wearing out their welcome with everyone, and almost bankrupting a local nonprofit they were 'managing'.

Oh, see, I would never fire someone on the spot. One guy in 25 years made me so mad that his nice letter was in the outgoing mail before he got home, but generally I put up with things for a while. Oh, yes, internally fuming at times, remembering always... I've sent maybe five "it's me, not you" letters overall. Wow, I need help.

I fired a lady on the spot when she wanted me to argue with the state that she shouldn't have to pay penalties and interest for failure to pay estimated payments. She wanted me to do it for free and said if I had any integrity I would. It should supposedly be included in my fee. Not a woman thing.

I wish I could think a little more like you. Anybody who ignores my advice then blames me when what I said would happen happens is just not on my list of nice guys. I would remember this at the same time next year. Is this a woman thing?

His dad was how I got the account and he's possibly the greatest guy in the world. The son is a nice guy but he's way the heck in over his head and not detail oriented on this stuff. He does all these screw ups and he's worried it'll get back to dear old dad.

They really can be jerks. This is the client who gets the nice letter from me: "It's me, not you (it's you). My business is going in a new direction (away from you). Best wishes for your continued success (aggravating the next poor soul to death)."

Sleep well and if they call again, ask them to send you a letter. Don't give them any information over the phone. I usually ask them if they will do any sexual favors for me because they are scammers. My conversation becomes demanding and with examples... all the time they hang up and don't bother me again.

He doesn't make that much money, so we don't want to do that to him (yeah, we're softies). But at this point, if he paid us triple our current fee I'm not sure we'd still want him. Although maybe for this year's returns we'll hike the price to what the local over-chargers charge him and maybe he'll go away on his own.

I have a ton of returns yet to do and finish but I am 100% caught up. Nothing in my possession is able to be done except deliver a few returns when the "shelter in place" order is lifted in 3 weeks. I have about 12 returns that are requiring some K-1 forms. Gotta say, it's a weird feeling.

The college may have someone you can get in touch with. Likely full time, but if you want comfort, a print out of their unit fee and full time unit count could be enough.

We're thinking of doing that with one of ours. Nice guy - but a clueless dolt who sends stuff in drips and drabs, does not read what we send him, does not answer the questions asked - always pulling hens' teeth to get his returns done. So now, WE'RE done.

Very nice summary of the tax stimulus checks. I have been sharing it with clients who have questions. https://www.forbes.com/sites/kellyphillipserb/2020/03/25/all-you-wanted-to-know-about-those-tax-stimulus-checks-but-were-afraid-to-ask/#5c537d2b1f9c

Maybe get transcript which would show classes? Compare with course descriptions? Does the cost seem appropriate for a full time student?

Only applies to currently employed folks. Those laid off are not eligible for the emergency PSL. I read this (from the star unfortunately) as being more for the next event. It remains on the books and can be enabled by declaration as needed. There are some credits when rehiring. (Make sure to get new W4 forms, I9, report new hire, keep any PTO or other balances required, etc. Better safe than sorry!) The business owners I have spoken to who had a similar decision almost all went for lay offs. Not only to try to keep the business viable, but to get the most money to their former employees as soon as possible (and making them eligible for health care too). Some, who are not facing stay at home or school closures at present, are even considering layoffs before April, then seeing how their locality proceeds. Catch-22 for all concerned, no way already in place to handle the situation, and no way to fund it cleanly for employers. For the future, employers have to be ready to float full wages for 2 weeks at any time, upon declaration. (Another employer burden, like mandated sick time with no notice or documentation required.) Those who went with reduced hours are facing the same numbers game now, lay off before April, or play the credit "game". Few have a meaningful balance due so most will have to be paying out of pocket (loan, charge cards, whatever they can scrape up) and hope reimbursement is speedy. Rinse and repeat until the PSL runs out. The "rub" is the law is in place, but the mechanisms are not, such as the exemption and reimbursement processes. Thus the 30 day "good faith" rule, since even those who write and disseminate the rules know the mechanisms will not be in place in time. My suggestion is to not read the news accounts and opinions. Read multi-person opinions, such as APA and other trade/professional group opinions and do what is best for the business to survive. Business fails trying to do good can cause more harm than layoffs. --- The more interest item, to me, is the keep working aspects. Way too much room to game, but probably the best the politicians could pass given their desire to look good during an election year. The pre tax school fee and student loan reimbursement should not to be overlooked. The language allows for the employer to pay direct or to the employee, so on its face, appears to be something which would be reimbursed at end of year. This could even make it into the extender group or made permanent. Parent Plus is included (good for me!). If structured to only reimburse for principal, the employee can still include the interest, if needed, for preparing their own return. Oddly, the "news" touted a dollar limit. The bill text I saw last night had no dollar limit. Waiting for the actual law text...

For the banks, I print the filing copy from Drake that only gives the necessary form that the bank wants to see. The big one is always for the client as they are entitled to everything that was used to complete the return meaning all worksheets; etc.

Rita be careful for what you wish 4. I heard stories. Anyway the way that Gail did it was the way I did it for my youngster. Worked out great.

And some taxpayers have the impression that it is permanently deferred! 1031's are great for estate planning with step up in basis. They are also useful when real estate is sold in a high income year. Currently have a client who exchanged for multiple properties and now selling off one at a time over course of several years while in retirement. JKL EDIT TO CLARIFY - Quote above attributed to me was actually posted by Max W.

Ran into this also. My question to tp was who got the $ and what did you do with them. Game over.

Great song, great lyric. People who have no knowledge of acting, struggle with understanding this lyric.

At the direction of Governor Kate Brown, the Oregon Department of Revenue today announced an extension for Oregon tax filing and payment deadlines for personal income taxes and some other taxes closely following the IRS extension declaration. This move is a result of the governor’s priority to keep Oregonians safe and healthy, while also providing relief and consistency for Oregon taxpayers affected by the federal and state COVID-19 emergency. Under the authority of ORS 305.157, the director of the Department of Revenue has ordered an automatic extension of the 2019 tax year filing and payment due dates for certain affected taxpayers as indicated below.

I ignored a phone call that my carrier identified as "SPAM! US Gov." But, they left a message, so I listened to it. It was a nice lady calling in response to my FOIA letter to get a list of my POAs. She thought she was missing the copy of my driver's license/identification. I called her back and had her tell me what she received; she found everything she needed in all the pages I'd already faxed in. I received my POA list in the mail. Sometimes the government DOES call us!!

I exchanged a walk on part in a war for a lead role in a cage.

Before I return to my day job. The operative question here is. Why did the much ballyhhooed IRS efile computer system not immediately reject my first return filed in 2014 for God's sake for using an incorrect PTIN number? I have filed for almost six years using an incorrect number and good Lord !!! they are just now catching it ? Them budget cuts must have done them in.

Plus, you have a third party involved, the trustee. Third parties can make things more difficult. I would just send him Section B of the 1041 with the appropriate lines highlighted.

Well, it's not all bad. The tax is only deferred and tax rates may be much higher when the new property is eventually sold.

US residents are taxed on worldwide income. For earned income there is a $107,600 exclusion if the taxpayer remains outside the US for 330 day in a 12 month period. The exclusion does not apply to the SE tax. There may also be a housing exclusion/deduction, if qualified. For employees, SS/Med is determined by the tax treaty with each country Under a Totalization Agreement (the US does not have this with Venezuela), where these taxes are only paid to one of the countries involved. Pub 54 is a good reference. As for the 4 states you ask about, they also tax worldwide income and some are very aggressive. They will nail you if there is any kind of nexus to the state. It can be something as innocuous as visiting your doctor, dentist, etc. However, each one may have different rules as to what is considered nexus. The business question I will leave to others. It probably should be posted as a separate question.

Scam.

I have doubts the IRS would call on that. Per the IRS website: Question: How do I access my online account? Answer: To access your online PTIN account, go to the PTIN system login page. On the top left side of the page under Returning User, enter your User ID and Password in the designated fields. Then click “Sign In”. BOOM - there is your PTIN once you log into the IRS

Check your PTIN renewal letter, both for your number and for a possible phone number to the PTIN unit.

Yep. I was my one customer, too. My dad bought the bonds for me, and I tried, but my mileage wasn't great. I did have one that asked me about it this year. He always has a quick question at pickup. /s I was already dealing with his 529 and showing him he was better off having the kid claim the income in order to use AOTC. Two years we plowed this ground. I wanted to hug him so tightly.

You'll need to complete Form 8815, and this is a bit more complicated than they tell you on the news or at the bank. It's very common that not all the interest is tax exempt. Hopefully, these will help; the Instructions are with the form: https://www.treasurydirect.gov/forms/savpdp0051.pdf https://www.irs.gov/pub/irs-pdf/f8815.pdf

https://www.journalofaccountancy.com/news/2020/mar/irs-faqs-coronavirus-filing-payment-extension-july-15.html?utm_source=mnl:alerts&utm_medium=email&utm_campaign=24Mar2020&utm_content=button

They're 'mental health aids'.

IRS posted this page in Q&A format, and question 17 addresses your question: Question 21 gives a similar answer for HSAs and Archer MSAs, extended to July 15th too.

Thanks Judy for the clarification that I failed to include. I just though "paper binder" was well known as to what it is. Mine also cuts the little rectangular holes and opens the plastic comb. I have one inch combs for the huge ones.

At least people can go into work Tuesday morning to grab files, laptops, clean food out of the office frig, put a sign on the door, forward phones, etc.

You can edit the cover sheet (and any letter) to be however you want it. Do this in any open return, save it for all future returns, then just discard and re-add the cover sheet in all rolled over returns.

I've done that too and used my GBC binding machine for those larger tax returns. It's the kind of machine that cuts a row of little rectangular holes and opens the plastic comb type spine, not the spines with the heat sealed spikes.

Thanks Terry D - all these years and never thought of cutting the folders for the rare tax return that is too large. I have a box of fastener prongs that I could use with the top and bottom folder pieces. Never too old to learn!!!!