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How many times have every one of us corrected prior year returns that were self-filed? Sometimes people bring them to us after they get an IRS notice. Other times they come to us because of some unusual item in the current tax year but we notice an error when we review their prior year. Often the errors are in the taxpayer's favor. I once had clients who took money out of a retirement plan year after year and paid taxes and early-withdrawal penalties. They had a child in college. I amended three years of returns and got them back enough so they didn't have to make another withdrawal for tuition that year. Doubt these folks will use IRS's free program in the future.

Catherine is right about the failure to file penalty. Once they miss the extension deadline, it goes all the way back to April, so your clients are already facing six month's worth. They must file ASAP and apply for CNC when they get the first notice. At some point likely all of us have waived our fee for a client in distress. Know your client, though. Some might be embarrassed by accepting "charity."

Long time client, hit some tough times. Pulled some money out of IRA to make ends meet. Did not have the money to pay me for the return and does not have the money to pay the taxes. We waived our fee to help them out, but they still don't want to file because they can't pay. We did not get their 8879s last night. What do you do with a client like this? You can only suggest....they have to sign the return to file. Breaks my heart but I don't know how to handle. I feel for them, but I think I did all I can do (short of paying their taxes. Tom

Went to log in to e-services for something else, and saw "Renew Your PTIN" as a new option. I've already done mine. Fee is down to $19.75 for 2024.

I agree with cbslee. However, if the client is a PITA....extra fee for amending the personal. Tom Longview, TX

Tom, For what its worth, it is very honorable for you to be compassionate and concerned about a loyal long-time client. I think everyone of us has faced something like this in our line of work. I know I certainly have. While these folks may not have taken all of the available funds from their retirement accounts, they may need those funds to survive in the foreseeable future. Knowling what you know about these folks, I sure wouldn't want to be the one to take the last dollar and have that on my conscience that I may have caused them to fall further when I could have helped. I'm not saying this applies to every person who is down on their luck. Different circumstances require different actions. I agree to have them file the return and seek the CNC status. The bill will not go away but no collection activity will take place either. The ones I have no sympathy for are the ones that sit and complain about my fees and how hard it is to pay them and find them sitting at the Longhorn steak house for dinner right after they picked their return up from me. As you said, I think we can tell when the story we are given fails the smell test. You apparently know these folks very well so go with your heart on this one.

If you read about personal tax compliance in other countries like Italy or India, it barely exceeds 50 %

I use excel spread sheet to allocate and summarize. Several years ago I did one for a new client with 1040x because original had been totally blotched by previous preparer. That and other mistakes were in client's favor by $20,000+. 1040x was audited with no change.

My biggest question is "Will this system process EITC?" If so, what proof of eligibility will the site require? I can just see this as a scam in the making, just like the ERC debacle. I am not mad at the concept, I think there is merit to what they are trying to accomplish. For a single W2 earner with a standard deduction I think this is a good solution. But, if the site will process refundable credits, I worry that the IRS will not be able to handle the volume of claims. Count me as skeptical. I just see politicians making it easier and easier for EITC fraud on this site over time. Tom Longview, TX

You can do a summary of the like-kind exchange and have the details listed in the BLANK Statements. That's the the CCH/ATX website says to do. Here's a link to the website instructions. I've screenshot them for you too. https://support.cch.com/kb/solution/000162166/how-do-i-complete-a-1031-like-kind-exchange-for-multiple-assets-in-atx

7. News from the Justice Department’s Tax Division Lance K. Bradford, a CPA of Henderson, Nev., pleaded guilty to aiding and assisting the filing of false tax returns for his role in a purported investment scheme to sell false tax deductions. In total, Bradford’s scheme caused a tax loss to the IRS of at least $8 million. Bradford is scheduled to be sentenced on Jan. 16, 2024, and faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. I really think he deserves a longer sentence than 3 years!