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It would kill me inside to have to answer calls all day about where's my refund. I'd need a tape player like the IT Crowd had.

A colleague who does a lot of these talked once about his frustration seeing the same folks come back every two or three years with the same bleeping problems. Not filing, missed a payment and killed their IA, not making ES pmts, we all know the type. An older man at his firm said to him, "You just need to look at them differently. Instead of calling them "problem clients" instead see them as "walking annuities!"

I didn't know the IRS (PPS) had this feature until yesterday, I requested to be called back and when it was my turn, I missed the 1st call because I was on the phone with a client, 5 minutes later the automated system call me back and I was speaking to an agent. My call was in regards to a client refund from early February, the agent was very helpful and was practically reading the script given by the head honcho's line by line. "Tell the taxpayer we are experiencing huge delays because of COVID" "Tell the taxpayer the service centers are not fully in operations" "Tell the taxpayer the IRS is trying to do it's best under these unusual circumstances …."

Here is the question; When TP graduated college, did he then begin working in CT before joining the military in CT? If so, then the military might have deemed CT his HOR. But, as @HAHN1040 stated, TP can keep NJ as long as he didn't actually change his tax home. If not, then file the NJ resident return and file the CT as a non-resident. I have a feeling that the TP began working and living in CT after college, and the military determined his HOR for him, OR it was an error that needs to be changed. Sorry to have dropped the ball on this. I'm traveling and if I access the site from my phone, I'm another person. I popped in on my home computer remotely to respond. So, if you see..... like.... Cher... it's just me.

We have a longtime EA here in Oregon whose practice is mostly dealing with OIC and IA. She insists on all of her fees to be paid in advance. We also have a local tax attorney with several EAs on his staff who also mostly deals with OIC and IA. he asks for a sizable retainer up front.

I won't touch ANY representation work without a retainer (unless I'm willing to do it pro bono). They are already proven to be fiscally irresponsible, so if I respect my own time and expertise, I have to get that retainer. It's also an excellent way to weed out the ones who are not going to follow through. Once they've handed over money, they are invested in the process - which makes it worth my while to dive in to the work.

Thanks, Possi, for taking the time to answer my questions during your travel. I need to check with the client about more details. But as far, he told me that he lived with his parents in NJ most of 2020 only travel to CT one week each month from Sept 2020 when he joined National guard. I understand that in such case, he should be treated as CT nonresident and NJ resident. Also, it seems that CT does not tax military income from nonresident. So, even though the w2 shows CT income, I need to override it to 0 on tax software. Thanks all!

I'd rather walk someone through an I/A any day than fill out an 8283 (for example).

CT just announced that returns with unemployment filed before the software updates will have to be amended even if the IRS auto-corrects the federal. CT starts with federal AGI and does not have a separate line for unemployment benefits, so there is no way for the state to know what went into that AGI number. If MD and other states do the same, there's a whole lot of amending going to be happening. And we thought that this year we might actually get some time off before extension season hits! Our software also will update the minute we open the return, so the "originally reported" numbers will all have to be entered by hand (and double checked of course). We are planning to charge $75-100 per amendment. If federal amendments have to be done because the client is now eligible for a credit or deduction that wasn't there before, we'll charge for those too.

You get a lower set up fee for having direct debit, not a lower interest rate. It is always substantial difference and it keeps changing. At one point it was $45 vs $225. Also, if amount due over $25,000 , it has to be direct debit.

I would put it on Sch E again. Unless it is more than a nominal amount of land basis to allocate, I probably wouldn't worry about that. I knew you weren't questioning it being taxable. That part of my reply was to grandmabee's "14-day" statement. As someone pointed out last year, your client may lack adequate insurance coverage for people using the property as other than personal guests.

We do not attempt to e-file RITA. Too many bad experiences. We use the generic Ohio for 95% of our municipal returns. If you need assistance, we are quite familiar with ATX and muni returns. Send me a PM, I will be glad to assist you.

And you do not have State, School, or municipal tax returns. If I only dealt with 1040, I could triple my return count.

Why not MFJ since your client is POA for spouse?

That rule is a special provision of 280A that defines rental of a residence, so with this being rental of only the yard, I'm not sure that would be applicable with the facts presented. There's definitely a profit motive, so I'd say that it is reportable. Max W, does this client advertise this in any way, and if it is the same client as last year, how aggressive is he with this? Could it be construed as a business at this point? Is there any access to the home or other facilities at all? How does one host a party of any duration without having bathroom available? Anything else available to the guests such as a pool, gazebo, or any other structures or improvements to the property?

Deja vu - I would be more worried about them having the proper insurance, do you know how drunk people get in weddings, especially today

It is not a C. You can put on E but land no depreciation so misc. income would work. QBI might come into play if on E. Also check on renting less than 14 days not taxable. Guess I am not much help just some ideas to look up.

Active duty can maintain their state unless they choose to change. Ask: did he intend to change? did they do all of the change residence steps: driver's license, vote, car registration etc. If he did indeed change, then he would be a part-year NJ and CT. CT is not a state that military tend to change to (FL, TX) . But he may have his reasons... If he did not intend to change, then I would file full year NJ. and non-res CT showing taxes withheld in error. In the future NJ does not tax his militaty pay if he is not in the state.

I have no employees and prepare 300 tax returns. I was 99% wrapped up by 4/15 because I anticipated the extended tax return date and informed clients in my annual letter that such an event would not change their usual 3/31 deadline to provide all of their information. Their annual questionnaire included new lines for confirming and providing their 1st and 2nd Stimulus refunds as well as data for the other new issues. My clients are well-trained and almost all of them complied; the others are looking for a new tax preparer - LOL. Unfortunately, the "superseding tax return" issue then reared it's ugly head so I was forced to postpone my 4/16 vacation. Alas, the best laid plans of mice and men ..........

Thank you everyone for this discussion. Now I know more than I could ever know on my own, and without the doubt that something may be incorrect. You guys are simply the best!

I hate those that took a withdrawal from their IRA to pay their balance due and then, of course, find out the hard way what that does to their income and taxes year and want to withdraw from their IRA again until I have The Talk with them.

Good to have a simple home based business unless you get one of those "Did you receive your first and second EIP payments?" As a blank expression fills their face you sigh knowing you've got another throwback.

P. S. As it turned out he did not need the installment agreement. He had not received his second EIP which when added as a refund almost covered his liability.

I had a client paper file (they wrote numbers in by hand ) in July 2020 and send payment with return. The IRS cashed the check and didn't process the return. By February 2021 I finally conceded to the clients wishes and drafted a new original paper-filed return to mail off. My other client with a 3520 issue (and $24k penalty) is getting the nasty grams from the IRS but there's nobody to call and no one to process, so that will be a total nightmare for months I'm sure.

Most people needing installment agreements aren't looking for savings. They're looking for sound financial guidance from their tax preparer whom they trust to guide them in dealing with an unexpected tax liability. They're often trying to dig out of a hole while avoiding borrowing from their credit card or a few other sources at incredibly high rates. For them, the I/A is a life saver, and at a very reasonable effective interest rate when compared to other choices they may have. ("effective interest rate" = the interest plus a FTP penalty combined). Plus, it doesn't affect their credit record or available lines of credit. But yes, they do have to actually comply with the terms they agree to or else they can find themselves in hot water.

Sounds like the best procedure this year is to send the first "installment" payment with the return, and have the client make monthly "installment" payments online via Direct Pay. Then get the real agreement going online once they get the assessment. A new twist on "fake it till you make it!"