Leaderboard

How can this be tuition? For education credits, money must be paid to an accredited educational institution eligible to participate in gov't student loan programs. One can no longer deduct education expenses on Sch A and even if you could, they can't be for education leading to a new profession.

If you haven't yet done so, I would go to Drake's support site, and under "Reports," print out the "E-file Detail Lookup Report ." That report is more detailed than what is available through the software. For Federal and each state return, it shows the time stamp, its e-file status, the e-file submission i.d., and the DCN. The submission i.d. is unique to each return, so CA's identifier will be different than the federal or any other states for the client. Because by Monday you will be beyond the 5 day correction period for rejected e-files, that report would prove that e-filing was done timely, because if you end up resubmitting the e-file for some reason, it is my understanding that a new e-file submission i.d. is generated and that may make it appear as if these returns were filed late. If you don't have acks by Monday, I also think you should escalate this to a higher level with Drake than with those that provide basic telephone support. There were other years where posts here indicated a delay of 2-3 days immediately after the deadline, but this seems too long to me.

Are these returns on extension? The reason I ask is that my state doesn't accept e-filing of its extension, so when I send the 4868, I always click the box to suppress the state from being sent just in case. Then, I always have to remember to uncheck that box when I file the returns themselves. Any possibility something like that happened? Another thing, have you checked the e-file database for these 5 returns, either through the software or Drake's online site to make sure they were sent and for the timestamps?

If you think the client is lying, then by all means you should decline. That is your call not mine. I don't think a behemoth of a truck is preposterous for a ranch. 2 tons of feed in a trailer going up hill....on the freeway....at 70 mph. It takes a truck. A man sized, full power, get through the mud truck. I just wish we could plug in an app like the insurance companies do and at the end of they year it would spit out a mileage log so we don't have to guess where it was parked and driven. Maybe the next Acting Commissioner (fifth, sixth...I lost count) can make a rule that they have to have that device to get a mileage deduction... how cool would that be? Pipe dreaming Tom Longview, TX

I think she is saying they got the credit 10 years ago and stopped making the annual payment on their tax returns and now want to pay what they owe. @Catherine is asking if the 5405 is still a valid form for this and if there is a penalty or interest that needs to be calculated when they pay back the remaining balance due. The following commentary is about why the IRS did not follow up after all this time if they missed the repayment. At least that is how I read the OP. Tom Longview, TX

Thanks, michaelmars, for claifying that it was "just a scare tactic". I've used a few myself when someone has not paid. Yes, kc, I was paid. And I had considered returning that payment as part of shedding myself of this situation but have since changed my mind. I did the work, and did it well with the information at hand, so not being paid for the work I did would make no sense. Jainen, you have a strong point. I was professional in the stiuation; the cleint was not honest which is not within my control. Regret is not the word here, I am just angry. The return was prepared correctly with the information provided. It is not me who has woven the tangled web of lies in which the taxpayer now finds himself enveloped. IRS is pouncing very quickly on this one. Lion, my notes are very thorough. Breath is already caught. No time like the present. The client is receiving a you're fired letter this week. He's on his own with the mess he has caused with his untruths. And as I ponder the responses on the board to my query my perspective has become much, much clearer. THANK YOU, everyone! Elfling

>>it was just a scare tactic since i am unaware of any way to actually do it<< Beautifully done! My favorite kind of tactic. And very appropriate here, too, because that same tactic is basically about 99% of the power the IRS exercises over us (which is the whole reason it worked for you). I nominate michaelmars as Forum Member of the Week!

I was the one who posted about being removed as paid preparer: it was in a letter i sent to a client that owed me money where i stated since i wasn't paid i am going to ask the irs to remove me as paid preparer. i further stated that i don't know if this change will open her return to further irs scrutenty or if it will extend the statute for audit. She paid with in a week! it was just a scare tactic since i am unaware of any way to actually do it with the irs. i think i got the idea from a posting on the old atx board.

>>truly believe my name should be off the return<< I disagree. You signed your name to work you did under the terms of a professional engagement. In my opinion, you can't disavow that just because you now regret that you accepted inaccurate or incomplete information or were otherwise unable to control the interview. I suggest you make sure your files are in order, and then get busy with the next client.