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Here's one i sent early this year for an out of state client who kept sending her papers to me later and later every year and was nearly impossible to get a hold of. Dear XXXX, Hello, I hope you have been well. After careful consideration, I have come to the conclusion that I will be unable to continue to prepare your tax returns. Due to the demands of new onerous tax legislation and the absence of my executive administrative assistant, I anticipate being overwhelmed with work. I also feel that you would be best served by a tax preparer local to you. It has been a pleasure serving you through the years. Thank you so much for the past business and trust that you placed in us. I wish you the best of luck in the future. Thank you, Of course, insert your own excuses...

I had a client once say to me, "I don't think you need to know that" and I handed his papers back to him. Told him "You're right; I don't need to know that, because I am not doing this return. I do NOT ask unnecessary questions."

We can tell you re feeling better!!

I've had a client disassemble a return, too. What is that about anyhow?? I mean, why would anybody do that? Did they think, "Oh, they don't need to know THAT..."?

Well, if you put it that way...

They have filed incorrectly, owe tax more than likely, and the question was can they amend? Well, of course they can amend to correct perjury. They are not married. They filed incorrectly. The poster is not trying to twist their arms.

Not complaining at all but it does seem like this year is busier than normal and clients are later than normal. Every time I think I am gaining of the pile, more comes in. Some of these will not get completed and one I am picking up tomorrow will hit the extension list. Nothing like rfassett but still steady for me.

Sounds like a great idea, Tom! As the proud owner of a 2006 Prius with over 150,000 miles, an all electric might be my next step. And seeing it on the Nascar circuit might just push me over the edge. QUIET!!!!??????? Not in my office. It has been just another tax season day. Started out with my data entry person walking in the door this morning all rattled and asked if I saw what just happened. I said no and she went on to explain that she lost control of her vehicle turning into our parking lot. Somewhat perplexed, we were talking when a car went by the office going west (which is somewhat uphill) at a very slow rate. I looked down the hill and there was a car half way up the hill in the ditch and cross ways in the east bound lane. Within just a very few seconds, the rain had turned to ice on the road. When the dust settled, we had three vehicle in the ditches, a couple of fender benders, my wife (who always wants to help) falling, the first policeman that arrived was fish tailing all the way down the hill, a pickup truck sliding into the back of the ambulance - it turned incredibly slippery inside of just a couple minutes. I had arrived at the office not more than five minutes before without incident. My wife had made her way down to the first accident and fell crossing the road. She did get to the other side. When she had made her way back up our way, she called me with her cell to come out and help her across the road. She says she figured out how the chicken crossed the road. It called the farmer. And the rest of the day was not quiet either. Returns are still coming in at a good pace - with six coming in by 4:30.

Nah. Don't tell them - that takes a little of the shine off your halo.

I like: "Dear ex-client, It has been real. I have chosen for you to no longer employ me. Good luck to you now and in the future. Sincerely" The others have posted some excellent suggestions and clearly more professional than mine. Mine is short, sweet and to the point - and removes any finger pointing - and removes all editorializing - and removes any doubt about the point. KISS

I once asked a client her occupation....and she told me that she didn't want to discuss her life with me. Remember the "paper filing days"....and putting the returns in the wrong envelopes!

Don't start with that 50 shades of grey stuff. I would never lay a hand on you or any other woman. And this is a family friendly forum. Lets keep it that way. Tom Newark, CA

Regrets? I've had a few. Here's an article with some samples, sorry got nothing on my computer at the moment. I like vague, and I don't recommend another preparer, unless I really want to stick it the client and I recommend the hateful woman who overcharges. I like the "It's Not You, It's Me": http://www.nicholasreese.com/problem-client-scripts/

If married, you cannot amend from MFJ to MFS after 15 April. (You can amend to go from MFS to MFJ at any time.) If you filed with an incorrect status, you HAVE to amend. They have to amend to Single, or HOH if one of them qualifies. From CCH Tax Prep Partner (not sure if "may file" gives you an out or not: 1085Changing Filing Status After a Return Has Been Filed An election to file a joint return is generally irrevocable. Once a couple files a return, they cannot choose to file separate returns for that year after the due date of the return. However, there are a couple of exceptions to this rule. When a couple files a joint return but subsequently determines that they were not entitled to file a joint return, they may file an amended return to change their filing status to single or head of household, whichever is appropriate. This may happen, for example, if the person who presided over the "marriage" ceremony was not authorized under state law to conduct weddings or if the marriage was subsequently annulled ( Rev. Rul. 76-255).

Well, sweetie I can be as contrary as the next guy, and I did find in the Instructions that one purpose of Form 1040-X is to correct 1040. They filed incorrectly. They need to correct 1040. They're not trying to amend MFJ to MFS, they're not married. They're single. http://www.irs.gov/pub/irs-pdf/i1040x.pdf

Check boxes for final disposition of PTP and final K1. Also, the gain/loss should be on a 1099-B from their broker. AND the K1 should have a statement showing you how much of the gain is ordinary and needs to go on 4797 part II. If AMT is an issue, there is a number on the K1 attachments for that as well.

You can't amend from joint to separate after 4/15 or extended due date, but if joint was an error, you can amend anytime you want.

Well, yes, and they have an obligation to do so.

I had a client mail in the 1040 client copy, and they got a letter wanting all the rest of the schedules. took awhile to get it all sorted out. Confused the crap out of me until I got a copy of what the IRS had. They had looked up all the SSNs even (I have them masked on the client copy).

Drake has both the elections for de minimis and the small taxpayer for real estate under 1 million. Check a box and they are printed out and included with the e-file. I was also very pleasantly surprised that it also automatically calculates the circular formula for the SEHI when the PTC is involved.

Final_Client Notification Letter - New Capitalization Regs De Minimis Safe Harbor Election.doc2014_FoxTax_Engagement.pdf I pirated prose/format from a combination of these two documents that I found when searching the topic and was able to come up with something that I felt okay about. I hope I uploaded them. Thanks for the instructions, Judy!

Power of attorney doesn't entitle someone to act as successor trustee. If the person stepped in as a successor trustee during the Grantor's lifetime, a separate trust EIN could have been applied for at that time but wasn't. At the date of the Grantor's death, the Revocable Trust became irrevocable. I would get a tax ID number for the trust, report the income as 'nominee' and file the appropriate 1099, and report the sales on the 1041 with the step-up in basis. I believe this follows what OldJack is saying. Good luck getting the broker to reissue the 1099 in the new tax id. I think that is unlikely to happen, because it does not reflect what actually transpired (from the broker's perspective). If they will do it, obviously that's great, but if not, I think your option is nominee.

The issue is not the management fees, it is the vehicle from which the funds being used to pay them are coming from. All the expenses in a retirement account are generating deferred income, hence they are not deductible. Fees in a brokerage account are for the generation of currently taxable income, and therefore can be deducted to offset the currently taxable income that they are creating. Tom Newark, CA

On a better note Dear client, thank you for thanking me and mentioning you are going to give me a bonus for getting you a refund. Maybe I should of told them, I do this to all my clients that over paid taxes

I spent my morning texting and talking to my son who was sitting in airports on his way back from spring break in Panama City Beach. He started in at 5:30 and kept it up so that I only got an hour of sleep until I went and picked him up at the airport so that he could hightail it down to KS to see his gf. I'm not complaining, just really tired. My husband says I'm nuts and should tell him to leave me alone, but he's almost 21 and it won't be long until he won't bother with good old Mom as much. I think that life is too short to put everything else in front of family.

Dear Client, Yes, I know that you are a used car salesman and your time is much more valuable than mine. To that end, let me save us both some time and tell you that yes, I am quite sure child support is not deductible (even if all your buddies are doing it), and regardless of what your employer told you, the shirts, ties and khaki's you wear to work every day are not "specialized" clothing and therefore not deductible, and oh, you were also grossly misinformed by whoever told you that the 5 miles you drive from your home to work every day are deductible. They are not. I also seriously doubt that your cell phone is being used 100% for business since in the short time we've been in this interview you have used it to a) call your wife, b ) text your church's treasurer for info about your charitable deductions, and c) look up your babysitter's address. I am painfully aware that you do not want to "take it up the tailpipe" from the IRS as you so eloquently stated. This is not my first rodeo. I will do my best to make sure your return is done accurately and in a way that best benefits you within the limits of the law and tax code. Give me a little credit here. Geeez! That is all. Thank you and have a nice day.

I would send the e-files, assuming they signed the 8879, and act like you don't know a thing about the goof. And it is ok to kill that client.

I live very close to the Tesla plant in Fremont CA. With both of my kids studying engineering, we frequently talk about Tesla and the advantages and disadvantages of electric vehicles and what advances are needed in technology to make the vehicles mainstream in the US. There is always press releases and news about what Elon Musk is up to in our local news. So we are watching Nascar this weekend when we started talking about how it would look if there was an electric vehicle Nascar race? In other words, challenge a bunch of rednecks figure out how to make them suckers go faster and farther with faster charging of the batteries and I think they would blow away the wine sipping Silicon Valley nerds who are trying to make this happen. That is all Nascar is about - going farther and faster than the guy next to you. If you think about it, it opens up a lot of possibilities. Dale Jr doing donuts in front of the grandstands at Daytona after winning in his Tesla model S and there is no sound coming from the engine!!!!!!! They could get Tesla to sponsor a circuit and call it the Tesla cup. Nissan Leafs competing with Chevy Sparks to see which one can get to 200mph on the backstretch? Nascar as the leader in the environmental movement? Tree huggers filling up the stands at Sonoma Raceway every year? Just some random thoughts for a slow Wednesday morning..... Tom Newark, CA

Oh my gosh, this one should be labeled "Laugh of the Day" !!!!

If the school participates in the Federal Student Aid program, the answer is Yes. International Schools That Participate in the Federal Student Loan Programs (this list is updated quarterly, so check with your intended school to be sure it currently participates) You will get a spread sheet of over 800 foreign schools.

Still have no desire to chew; it's all too much effort. So I had a chocolate frappe (that's milkshake to you folks outside New England) for lunch!

Terry, your question about the learning curve is hard to answer. I didn't have much trouble at all once I figured out where the screens were and how the program doesn't require or show certain information on the screens. It had input for only what is needed and nothing more. What helped me the most was checking the conversions and doing a few simple returns over again that I'd already done in ATX and comparing the results. Drake offers case studies and practice returns for the users to work through too. I didn't have time to use those, and didn't feel the need either. Some of the input screens look very similar in layout to the forms itself, such as the W-2 input screen, while others look nothing at all like the forms. If you aren't dependent on forms-based input and having to see the live return on the screen all the time while you are working, I think you will be fine with it. If you are the type of preparer that wants or needs the actual form to be constantly updated while you are working on it, then maybe it isn't for you. Personally, I think that is a crutch that is best avoided. If you know what you are doing and how the item should affect the return, you will be alright using Drake. Remember I switched early on during the season, and I was comfortable with it by the time the real onslaught hit me. It seemed like an easy season, and I felt that it made my work easier and faster, especially with out-of-state credits. It handled most of those automatically without much additional input from me, and that was something that took a lot more of my time in the past with ATX because none of it was automatic when it came to the N/R DE returns for PA residents. I also have taken advantage of their pdf print function, document manager and scan functions to go paperless. Their manager allows for controlling the scanner from within that, remembers common names of files at the users choosing, and allows for fast duplex scanning too. All of that has saved a lot of time and resources for my little practice. It does take some getting used to and learning where things are located. If you are going to look at Drake, I'd suggest going to one of their presentations and getting the free trial version of the software to play with after the season ends. Some love it and some hate it.

When I get those questions, they are mostly re my ex-husband (1987 divorce) and his second wife (early 1988), so I can NOT answer them for myself, either. For some UPS thing I was filling out, I ended up using my current husband's name, because I know HIS information. But that will never work for IRS. And, we had Anthem so are really worried about not being able to e-file. Time will tell.

Employees Self-Employed International Taxpayers Military Parents Seniors & Retirees Students Like - Click this link to Add this page to your bookmarks Share - Click this link to Share this page through email or social media Print - Click this link to Print this page Understanding Your 5071C Letter This letter tells you that the IRS received a tax return with your name and/or social security number and needs to verify your identity. You can verify your identity using our secure Identity Verification Service site at idverify.irs.gov. The contact information below is only for taxpayers who received Letter 5071C. Why are we contacting you? We received a federal income tax return with your name and/or social security number. We want to protect you from potential identity theft so we are asking you to verify your identity and tell us if you submitted the return. The letter you received provides two options for responding. Both options enable you to verify your identity with us so we can continue processing your tax return. This contact information is only for taxpayers who received Letter 5071C. The toll-free number and website are for identity verification only. No other tax-related information, including refund status, is available. What is involved in this process? We will continue processing your tax return once we verify your identity and confirm that you submitted the return. If you did file the return, please know it will take approximately six weeks to process it once you verify your identity. Follow the identity verification described under "What should you do?" below to provide us with the necessary information. What should you do? Use our secure Identity Verification Service website idverify.irs.gov. It's quick and secure. You should have available a copy of your prior year tax return and your current year tax return, if you filed one, including supporting documents. If you cannot use the Idverify website, you can call us using the toll-free Identity Verification telephone number provided in your letter. Again, you should have available a copy of your prior year tax return and your current year tax return, if you filed one, including supporting documents. If you did not file the return in question, you can use either option to notify us. How can I learn more about the IRS's identity protection efforts? The IRS is continually looking at ways to increase data security and protect taxpayers' identities. To learn more, view these topics on IRS.gov. Identity Protection: Prevention, Detection and Victim Assistance Publication 4535, Identity Theft Prevention and Victim Assistance Page Last Reviewed or Updated: 17-Mar-2015

Judy brings a good point, Vityaba and myself were confusing to different terms: Filing Threshold and Filing Requirement. Thank you for the clarification.

What is a landman?

Yup, I pay my IRA management fees from outside the IRA just so's I can deduct them.

You got me confused! Do you need to file an estate return or a trust return? Who actually owned the stock accounts, the individual or a revocable trust. If the individual owned the stock you get an estate ID, if the stock was an asset of the revocable trust you need a trust ID. You must determine the legal owner of the stock on the day before the date of death.

Where were your sons when the town of Cicero, IL built the Chicago Motor Speedway at cost of $70M right between the city boundaries of Chicago and Cicero. At that time I lived about 4-5 miles away from the track and we could hear the noise, the speedway received so many complaints it was closed within 4 years and moved to Joliet IL

I did add them! I'm totally jazzed. I needed this boost on 25 March! How many years have I been posting to this Board without realizing I could upload information???

Totally makes sense now!!! Really appreciate it.

A traditional IRS is already a tax deferred account, so if the funds are being deducted from the IRA, the money paying the fees has not been taxed. You'd be double dipping and only preachers can do that with mortgage interest, property tax and housing allowance. Don't get me started. You beat me, Tom. But I still love you.

Assuming you mean distribute all income via the K1? They changed this feature in the software. Last year you would attribute income as Beneficiary or Fiduciary income on every input screen pretty much. The Beneficiary's K1 needs to add up to 100%. The time I had to call them, I had Capital Gains not rolling over and there is a feature to attribute that on the Schedule D page - very last lines of the page. Otherwise, it's been my experience that the type of trust will determine this. Under Income, Deductions and Credit you can override entries - not a fan of that.

Dear Client, Thank you for telling me you are going to owe "them bastards" $10,000 when you dropped off. I would have never known that if you hadn't clued me in. Also, thanks for explaining to me what a 1099-R is cause I would never have known that you took money out of your 401k early from these forms and the fact that you are 45. It's like Mission Impossible deducing what these strange looking papers mean. Thank God I have you to help me muddle through. And guess what? It's more like $15,000.

Rita, it's also called professional development and we all need it, you know?

Just e-file. Assuming they just sent the paper return....e-filed return will get there soon...and the IRS will throw out the paper one. I do this with states...when I apply for ITINs. I tell the client to contact me when they get the ITIN and I'll e-file. But I always give them a paper copy...just in case they can't contact me. Quite often...they send in the paper one anyway. One state rep said if a paper return comes in after an e-filed return...it goes in the garbage.

Best one ever. Tailpipe. I'm dying. OMG, I may laugh all day.

Change the automatic update settings to download updates and allow you to choose when to update. This will stop the overnight reboots for updates. Find the settings in Control panel.

Get Marilyn's template. It's all set up to print on Avery labels (she'll tell you the number, but they're easy peel, so easier to use than the IRS ones). Marilyn: If I'm causing you extra work, I'm sorry. I can email the template to anyone who messages me with their email address. (But I'm at a biz client's site on Wednesdays, so it won't happen until tonight or Thursday.)

This page has a chart that goes through 2010 and has those oddball dates for the purchases to qualify: http://www.taxpolicycenter.org/taxtopics/Bonus-Depreciation-and-100-Percent-Expensing.cfm