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I asked a client to text me a picture of the front and back of her license because the ones I had were expired. She texted back "I don't know how you know they're expired, but here are the pictures". They were pictures of the license plates on the front and back of her car!

I have one former client who decided I charged too much for a "simple return" and he could do it on his own. The first year, he called and asked a very simple question that I answered. The next year he called again with another question. I told him my consultation fee would be more than the cost for me to do the return. Never heard from him again.

Calls from strangers in earlier years for blank tax forms instead of using the Package X at the library. Like I had nothing better to do than print blank forms. In those days I think the ATX program wouldn't even print a blank form with no data on it, or that's what I said anyway.

I have a mail slot in my front door. I tell people, put the envelope through the mail slot. Nope! They leave it between the back door & back screen. Or between the front door & front screen. I've even heard "I couldn't because the slot was blocked" - yeah, by the @#$%$#@ lightly-rolled hand towel that's just a draft stop, that I told them to IGNORE, but instead they ignore the sticky note that says push the towel IN with your envelope. Including people I have demonstrated the towel to. Too stupid to pour sand out of a boot when directions are written on the heel, that's what they are.

I don't even have a towel blocking my mail slot, and still find envelopes on my front porch out in the weather or between the doors or leaning against the basement door or...

In determining gross income for the filing requirement, gains but not losses are used in that determination. It is not the proceeds, but the gain that is taken into consideration. That being said, even when the basis is reported to IRS and no gain exists, the AUR will be using only the proceeds side of the equation and this client will receive a CP2000 later on. These used to be 18 months, but who knows how long that will be now. Yes, I would file a return. Also, consider the state requirements that may have a different method of determining income for the filing requirement, and many times is lower too.

It's up to the bank at this point. If the bank accepts it, it'll be in brother's account. If the bank rejects it, it'll go back to the IRS who will issue a check. Hopefully the brothers get along!

If it mom truly retained a life estate it would be included in her gross estate and receive stepped up basis.

One of the worst things about tax season is the overlap with Lent. Now I want chocolate...

I had someone call today, looking for help in how to look up whether a particular local charity has filed a public charity report on the state Attorney General's site. As if I knew in the first place, give a bleeping hoot in the second, and third would do such work for a stranger for no fee at any time. What gives with some people?!

Those are the amounts for when a new 8879 needs to be signed if we find a correction to the return after the original 8879 is signed. I've never heard these same amounts concerning CP2000 notices. Can someone else confirm what MaxW said?

RBC isn't the problem - they are using the data given to them by the Depository Trust Company which process all the payments. A lot of times it's dividends being reclassified as non-taxable distributions and that impacts other totals (or the reverse). A dividend is required to come from profits of the company and if they declare a loss, the dividend pay get classified as a non-dividend payment. Some REITS technically lose money but pay massive dividends and those are where the problems exist (usually).

If it were a snake I wouldn’t be posting anymore! Thank you

I'm done playing those games. Client wants to do things through portal instead of driving close to hour to office. It went on for days to get info. First they only sent state signed form. Emailed them that I needed federal also, and to put CC info on invoice and return it if they want to pay that way. Couple days later, I get the federal form and CC number and code. Email asking which of their names in on CC and that I need expiration date. Couple days later responds that it's under his name, but still no expiration date. Finally get everything and they get an email from me that this is not working and they would be better served going somewhere else next year.

I don't change the widow to primary until the year after the spouse dies.

+ Basis is stepped up basis at DOD not mom basis.

Obviously it has to be excluded, because having a fraudulent transaction canceled does not result in cancellation of debt income. Sure, use that line, but perhaps also the 8275 (is that the right form number?) - taxpayer disclosure information, anyway - where you put the facts of the case. But maybe worth checking with whatever attorney dealt with the purchase cancellation to get chapter & verse of state law to support the taxpayer's claim.

Oh, and like that is supposed to be a good reason, Judy?

Or the CP2000s will be going out later and later, which will be fun. That was kind of my take on it, that they likely wouldn't even bother. Other years when I've seen late corrections, it's never been anything that mattered to what folks owe. But they're still a pain to have to check every time, and they throw TPs into a panic at the thought that something's wrong.

I remember at an IRS forum back in the days of paper filing hearing an IRS agent say that he knew it wasn't the preparer's fault when they got returns in with no signature - they could see the highlights and the sticky notes saying sign here, but there was still no signature. I also put the drop off box in at our office because I had a customer that left his papers in the grill out back. Took a couple of years but I finally convinced him to use the box instead of the grill.

We are not open to the public on weekends so we can get stuff done. Plus I can crank the music !!!! Nothing better than classic Sabbath, Aerosmith, Steely Dan and Zep !!!

This morning, after two calls trying to find us, in walks an elderly man with a handful of papers. He wanted us to show him how to fill out his tax return on paper. He had just taken a buyout from a Federal job and is doing a personal return on paper. Not only does he have W2 income, but also a Schedule C and a Schedule SE for his wife who has a small business. (But, she never makes a profit) SE? My assistant made a vague attempt to help him out. He doesn't know how to use a computer so we are wondering where he is going to get the forms. My husband was timing how long he was here. I still can't believe that anyone would think they could walk into a tax office and expect to be shown how to prepare his return. Maybe he thought we were one of the tax offices that are closing.

Unless the change in taxable amount is more than $50, or the change in tax is more than $14, a CP2000 will not be issued.

A few years ago I took my name etc off both IRS and state directories and the stupid questions and help (consultation) stopped. My business was strictly referrals.

I haven't had one of these for some years. However after doing to some reading to refresh my memory, it's not obvious to me that a fraudulent transaction can be excluded. There certainly is no place on Form 982 to to exclude the this transaction. If you ignore the 1099 C you will likely trigger a CP 2000. The "identity theft" exclusion applies to to the issuance of the 1099 C. Perhaps I'm overlooking something

8879 signed with a highlighter. Is my instruction slip that confusing?

In her defense, you were vague.

My first thought was a second / vacation home with an actual transfer of deed with a written life estate; vs an implied life estate which is common for a personal residence. Your second post indicates there might not have been a legal transfer with a life estate; but mom did live in the second home rent free until death. Either way you need documentation of the facts to support a transfer per section 2036 and 20-2036-1.

Usually, WV where the money was earned. When you take a credit on your resident state return for WV taxes paid, you might be close to a wash. But if in your resident state you'll be in a much higher tax bracket, you'll need to increase your withholding or make an estimate to your resident state, also. First check on what happened to close the sale, because you might've paid WV income tax already. Also, I don't deal with WV, so check if it's a reciprocal state with yours, and if the reciprocity pertains to only earned income or if it might change how a property sale is taxed between the two states.

Thanks for the quick replies. I believe it was implied, not stated, but mother did live there until death without rent so all good. I just need to get value at dod which I suspect is pretty close to sale date. Still reported on Sch. D? Sale of second home and long term if gain, but likely a small loss with expenses of sale so no offset. There was no 1099S.

Thanks for the suggestion.

Well, that just stinks! Fraud involved and they get a 1099C.

I've never amended for one of these corrected 1099s and I've never gotten any notices. I'm not certain that the IRS ever posts these corrected 1099s, and even if they did, they don't send out notices for smaller amounts. I heard they run the matching software later in the year, then sort the notices by amounts from high to low, and only send out as many CP2000s as they know they can process, starting with the highest amounts. And with what is happening now, there will be even fewer CP2000s going out.

We hit some nice chocolate shops in December and January for me to stockpile, including the Lindor outlet store, but hubby replenishes my chocolate supply almost every week since January at Trader Joe's.

And there's your box of rocks!

For years I've gotten a bag of Lindor truffles before the start of tax season. I know it's been a good year when there are some left after 4/15. Still a month to go and the bag is empty.

There's an apartment upstairs where I am. My mailbox out front is quite large and says "tax office" on it in bright white letters. And the one next to it is smaller and says "upstairs apt". Every year I will hear "I didn't know which box to leave it in."

It gets better. I told her on the phone that if she signed and brought back in person to put it in my box. Oh no, where did she leave it? It was under a rock on my office steps.

The "High-Lite" of my morning!

Years ago I intentionally began using mail and night drop to encourage my clients to leave their info during off-hours. Eventually email and text accelerated that process. The intent was always to keep my clients out of my office so I could get some work done. But I do miss one aspect of the personal interaction. As we sat there talking about kids, church, politics, etc, I’d be casually pulling all the boilerplate, empty envelopes, and pages “intentionally left blank” out of their stack and shoving it into the shredder. Watching the expression on their faces while that shredder ground away was always priceless.

I've stayed virtual, so if they drop off or mail/ship unopened envelopes, at least I can use my letter opener and rip them all open and toss envelopes in my recycle bin and flatten out their documents in a mad flurry, all unobserved. Thank goodness, I do have lots who use my portal. I guess that's one of my criteria for firing/selling clients. I remember a strange old lady at HRB years ago that reported me to our manager and everyone in ear-shot in the office and probably to regional/national supervisors/whatever saying I shredded her tax papers! I opened each envelope and put envelopes in my wastebasket under my desk. All documents remained in her sight ON my desk. Our office shredder was in another room, so if I were going to shred anything, I'd save it in a pile until that client was done.

I can't work anymore with music, even the elevator music. Back in my younger days, I could work statistics problems, long hand on paper while cranking up the rock music.

Especially since their pile stapled together with the W2 note also contains a 1099-INT and 1098 and maybe their car tax receipt.

Law says 70 1/2.

Don't forget the dang sticky notes. Sorry, you don't need to write me a note that your W2 is a W2!

I encourage clients to start paying charities out of IRA's at age 70 1/2. Not only are they getting money from IRA tax free, it will lower RMD's when they set in.

Do you have closing documents? I had one of these several years ago where the closing statement also listed WV state tax withheld (easy to miss and there was some kind of make-shift W/H "certificate" included with the closing docs.). This was inherited property, so there was no gain, and the WV return was needed to get the withholding back. At the time, I seem to remember that WV law was that W/H was required for "out of state" seller as they were entitled to the tax on the sale. I assume VA would give credit.

I've never had an experience this bad trying to resolve a simple issue. Couple had been filing jointly for many years. He passed in Jan 2024. MI 2023 had a small balance due of a little over $100. I set it up in software to come directly out of bank account, which it did. She said she received a notice of non-payment over the summer, called them, and mailed in the bank statement showing payment. Nothing more heard until today when she receives a demand notice of payment for 2023. I call MI to get simple issue resolved. Box was checked on MI return that state can discuss return with me. Agent says she can't see that part of return in system. So, I call widow on other line with both on speakerphone to give authorization. Wasn't enough to just give her information for identity, she also had to find his SSN. So, now she can talk w/ me about return. Puts me on hold for 10 minutes or so. Finally got it figured out that they put the payment to his SSN and with his passing widow is now primary on return and payment is floating around somewhere. It's now going to have to go through a review that can take 6 weeks. I ask her to put a hold on collections while it's being resolved. She says she can't do that. 2024 has been filed and refund is more than 2023 due. I' betting they will take 2023 balance plus penalties out of 2024 refund. Unbelievable ineptitude.