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"All we can do is admit that we're not perfect and we make mistakes too." The above says it all. Some clients are understanding, and some are not. I don't think we'll ever get past the mindset that it is automatically assumed the taxing authorities are correct and we have made a mistake. More often than not, that is not the case. My primary state has been NC for 25+years and I can tell you they are worse than the IRS at giving explanations. I've been actively looking into whom to contact at the administrative level of the NC DOR to voice my concerns regarding how we as professionals are treated by some of the agents, the unwillingness to provide documentation to the professional and the client, the automatic collection letters without prior notice or the opportunity to dispute anything. My ongoing question is how am I, as an Enrolled Agent supposed to properly represent my client when I cannot receive copies of any notices or detailed explanations surrounding the notice or collection action. Every time I ask, I'm told the same thing, "we only provide copies of notices or other correspondence to the taxpayer". Great, but for the most part, they don't resend anything. These responses can add to the client's deception that we don't know what we're doing. Yesterday, I spoke with a very nice and cooperative lady at the NC DOR practitioner priority line, every explanation was "what the system" has done. Also, stated, I see "the system" issued a check in the amount of ****** but not sure why "the system" did that. We finally got to a figure that was owed we agreed upon, took notice the client's 2021 refund was absorbed to cover what was owed and the check was the difference between the refund portion and interest and penalties. Here's the kicker, I said there should be a penalty abatement for aggravation and confusion from the NC DOR, and she said well, "I can eliminate that penalty right now and your client will receive another check in the amount of *****." Now I'm a hero and we all know what my status will change to if none of this is followed through.

I don't use any words. First letters of a phrase with other letters, numbers, and special characters that change depending on the web site name. For instance, (not the actual core or scheme): core is Wttartif. Then the second letter of web site name, then a ? if the first letter of web site name is vowel, * if not, followed by the number of letters in the website name. This way if someone gets one of my passwords, they can't use it to access other sites, but I can still remember numerous passwords. According to password strength tester it would take 2 thousand years for password guesser to get it right.

And CallENQ has this posted on their home page:

Since they were delinquent and needed an OIC, what are the odds they spend the money if they deposit the check? I've had several clients receive checks with no explanation and we had no clue why. The IRS (or state) then asked for it (or more) back months later with no further explanation. Thankfully all were well off enough for it to not matter but these things are a nightmare scenario for most families.

Yes, the IRS and the state DORs make too many mistakes and when they do we can explain the situation to our clients. I remember 5 or 6 years ago I obtained a $35 refund for a client from Oregon, no fee to my client since they are one of my larger monthly writeup/payroll/tax clients. Today, it's unlikely that I would do that. Today, I would explain to my client that it would be an exercise in futility. For a larger amount, let's say more than $200, I would try, but I would tell my client that it will take a long time and it's uncertain if they will get the refund.

But when I compute that the return was correct, and my software computes the return the same way, but the IRS (or state) refunds a different amount or sends a balance due notice with NO explanation of how they arrived at their amounts, I do NOT want to say I made a mistake. I want the IRS to send an explanation the way they used to. They are NOT sending letters recently, just different refund amounts with no explanations or balance due notices with no explanations. I am only human and do make mistakes, but I want to learn from my mistakes, want to know what I did wrong. I do NOT want to admit to someone else's mistakes!

Well, if absolutely certain that he is not entitled to it, I would send it back. However you include an assumption about the 2010 return so it may actually be valid. Maybe. One option is to put it into a separate stand alone account and wait some period of time (whatever SOL might be), and see if someone comes knocking. He has managed to survive until now without the funds so maybe he could be on hold with IRS if really desperate to confirm if it's really his to keep.

Update, client just confirmed they have the proper documentation and agreed to enter the partnership effective 12/31/2020. He originally told me the other partner left before the end of the year which triggered all of my thought. Now it is easy.

You file a final short-year 2020 partnership return, ending the last day of the partnership. Check the Initial and Final return boxes on Form 1065, and check the Final boxes on Forms K-1. Then the remaining no-longer-partner has a Schedule C for the remainder of 2020 and future years, as long as they remain a SMLLC or sole proprietor. Are you preparing the partnership returns for 2020? Or is one of the former partners your client for 2020 and 2021?

Lion, we being accountants are used to being precise. Given the stressful conditions the IRS and other governmental agencies are dealing with, "reasonably close" may be all we can expect.

If the trust has more than $600 of GROSS income, then yes, a 1041 must be filed and K-1s issued to the grantors. This would be the case if income-producing assets like bank and brokerage accts, etc. are titled to the trust using the trust's EIN. If rental properties are titled to the trust, rental and income and expenses go to the trust. What are your clients putting into the trust? Does it have an EIN?