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quoted to move the remainder of C.Frog's post to its own topic.

Used vehicle credit can be taken only on first resale of a vehicle (VIN must be included on return) and is limited to $4000. Only for sale by a dealer of a vehicle at least 2 years old (by model year) at a price less than $25k. So maximum of two credits per vehicle, one new and one used.

The IRS has created a one page poster to be passed on to clients: https://www.irs.gov/pub/irs-pdf/p5797.pdf

"Timothy J Lundquist of Minnesota pleaded guilty to willfully failing to account for and pay over employment taxes for his automobile transmission business. Lundquist was responsible for filing quarterly employment tax returns, as well as collecting and paying over to the IRS payroll taxes withheld from employees’ wages. For at least the last quarter of 2013 through 2018, Lundquist did not pay withholdings to the IRS or file required employment tax returns. In total, he caused a tax loss to the IRS of more than $1.2 million. IRS Criminal Investigation is investigating the case. Lundquist faces a statutory maximum of five years in prison. He also faces a period of supervised release, restitution and monetary penalties." I am astounded that he got away with this for 5 years!

Agree with mcbreck's response. I'd document the dates, times, conversations, and advice given.

What claim would there be? I'm not responsible for their penalty and I certainly wouldn't make a claim for $350.

A client this stupid is never going to change. Just be glad you advised them of the penalty and they made the choice to pay less. May as well cut your losses at the outset.

Quick answer is "no." Long answer is also "no." After that, the response is "no, and please leave."

Send them to Shifty-Eyed Sam across town. Get rid of them. People who make that kind of money often use their wealth to elevate their position in society, and delude themselves into thinking everyone will do what they want.

When Roths were first introduced, the law contained an enticement to convert from an IRA: Convert all at once and spread the tax bill over four years. I did that with mine, and two years later the tax rate went up so I ended up paying more than I bargained for. Now the rate is even lower than it was back then. On the positive side, the IRA didn't have that much money in it so while the tax percentage was higher than it is now, actual tax dollars paid weren't that great. So yes, it's a crapshoot to decide whether to convert or not. Who knew they would change the rules for inherited Roths? Who knows what tax rates will be in the future or what other rules will change? The fact that RMDs are not required is a big benefit for those who may not need the money, but that's the case today and it too may change. Still, I have no regrets about converting mine. It's nice to know it's there and I can withdraw from it if I choose but never have to withdraw (for now).

There are so many variables that conversion decisions are just speculative in my opinion. There are some circumstances when it makes a lot of sense (i.e. one off business loss that drives income negative, so you have room to covert for free) but if you are looking at a linear income stream, you are just making educated guesses about tax rates, inflation rates and investment growth rates. Any of these items can make the best thought out projection look silly a couple of years from now. Tom Longview, TX

My financial planning software will almost always say to convert and will tell you that you've saved $x in taxes. I'm very reluctant because I don't know what the tax code will say in 15 years. How do I know they won't tax ROTH distributions over a certain level of income? At one time it was unthinkable that people would pay taxes on Social Security benefits and most people do today. My teacher friends and clients have been told their entire careers that they'll never pay state taxes on their public pensions and most of them do.

Back to the investment people that have convinced my not so rich clients to convert all their Traditionals to Roth. In my area, most of my clients will pay higher taxes now as they are working class. And they will have less income when they retire. So whose making money on conversion transactions....

Client makes a ton of money ($400k) and does a Roth conversion which generates an additional tax bill. Sweet. They are in a high tax bracket and couldn't explain why they would do a Roth conversion except the Ed Jones rep suggested it so it's his fault. I give them the extension and which includes an estimated penalty for underpayment and they decide to not pay it and just pay the tax bill - deducting the penalty amount. Now the IRS sends a letter requesting the penalty and the client thinks I should have to pay it because somehow it's my fault and they pay too much in taxes.