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Don't worry, the IRS checks the Premium Tax Credit all the time. There is no way they will get away with it. Please don't send a letter to the IRS for two reasons: 1.- The IRS will not do anything 2.- Tax preparers are already doing the auditing process for the IRS and we don't need to be the enforcers too. Just my two cents.

Actually according to an article in Forbes, under current tax law, if the loan is forgiven then the expenses which were paid with forgiven proceeds are not deductible ! Tax experts have been talking to the Senate Finance Cmte, since this was supposedly not the intent of Congress ! However so far Senate Finance Cmte is just listening? We will see what happens ?

Just imagine the scenario if you turned them in and some sort of investigation ensues. They would likely tell IRS that you had been advising them on how to game the system and then turned them in out of spite when they refused to pay you an exorbitant fee. Or something along those lines.

Yes, this was just changed I believe Friday the 10th.

Christian. We can't do much with information we gather with the purpose of preparing a tax return. So do vent here. We understand. But, then take a deep breath and move on to a better client. And, a Friday night cocktail.

I don't see any cause for depreciation. The timeshare isn't really ownership of the building asset, rather it's reserved time to USE that asset.

Ah but you can get 90% or more of the joy by just *thinking* about it. Indulge those fantasies for a couple of minutes, then shelve it and move on.

Well I got teed off trying to do what I considered best for the woman and then when confronted by the facts I lost it briefly. I would never have sent anything in. It's very frustrating (as you all know) when you give sound advice which is ignored and try your best and sota get the finger from an old client. I am comforted by the thought she will likely be doing the Futterwagen with the IRS for quite a while once she submits that form with no 8962.

The IRS has a fairly high bar to get over for a fraud claim and there needs to be solid evidence to back it up. For individual fraud cases, gross income has to exceed $200,000. For businesses, $2 Million. The whistle blower remains anonymous, but that doesn't mean the accused can't figure out who it is.

Refunds get held up with a letter from the IRS stating you had 1095-A marketplace insurance and must file Form 8962 before we can release your refund. Please return the 8962 and the 1095-A Just did 2 of them..

This is just my opinion and I am not being critical of the OP. But the amounts we are talking about here regarding depreciations, possibility oi SE tax are very insignificant so is it worth splitting hairs over? I agree with Max, put it on the E and be done with it.

What are they going to do with paper-filed 941s and people that have sent in payments by check?

I agree chalk it up to experience. I have had clients like these in the past and realized how glad I was to be rid of them. Too much at stake today to take any form of risk. In my 24 years of preparing taxes, it seems for every client I lose, deadbeat or not, I gain three clients in their place. I don't know why this works this way but it does. There are three clients I have not seen yet this year. I have already taken on enough new clients to replace them. So, go ahead and vent as you have. Now go have a relaxing weekend.

Advice taken Lion except I needed an excuse to go to our state liquor store and get me a bottle of Kentucky bourbon. Hey this is Virginia guys. Or gals.

I sometimes create a return on the previous year and make it exactly as the previous preparer sent it. Then I roll over the client. As you know, overriding the forms create unwanted results and that's why I manipulate the overriding on a return I will never send.

Confidentiality. Circular 230. Your license.

It's so comforting to know Walters Kluwer considers me a Quiet Hero. Of course, I knew it all along.

I skipped watching that video because I don't want to have to buy a new monitor.