Leaderboard

I do agree with both of you. Jack you are correct with what I should have tried to do. I couldn't get a signature and therefore refused to file the returns. I should have filed the extension anyway. This is a learning curve that I didn't need to learn. I will pay the penalty as you outlined which was my initial response. I plan on sending her a certified letter of my intensions that will outline what I will pay and how it will be paid. Her failure to pay penalties plus interest will escalate and that is her problem not mine. The letter will indicate my desire to terminate our business relationship.

I think it shouldn't be on the return at all. I'm not the welfare office that should screen people for this benefit. We all know that it will never go away, so I think the IRS should hold the refund until it has verified the W-2s with the SSA and employer filings whenever that happens...sometime in mid-summer. This two week wait is a joke.

People who rely on EIC to pay bills should not be the tail that wags the dog. They should just wait until April and after a one time delay they would be OK to wait 12 months for the next EIC.

This is not MY problem, YOUR problem or the IRS's problem. I did not sign on the line or run up the "bills" that need caught up. Poor money management skills of the American public is what has driven the tax refund process directly into the hands of the scamsters. Until Americans decide to take up personal responsibility for their lives, their families, their finances and cure themselves of the "Tax Refund As Quick As Possible" addiction, the scamsters will extract billions of the working Americans' money from the Treasure. Congress, nor the IRS will NEVER make the changes necessary to stop the scamsters. If they did, they would get voted out of office. (Which might not be such a bad thing if you think about it.

That only gives the IRS 15 days to verify e-filed returns, They should delay those refunds at least a month or maybe until April.

We all know what you mean by this! I don't always learn my lesson, but when I do, you can bet it was the hard way.

I'm representing the client; I prepared their returns and they called me in a panic when they received the notice. Apparently, I'm not as stupid as I think I am. I had someone review the returns and they didn't find any errors. They're confident that I took the losses the client was entitled to. They reviewed my basis calculations and all looks fine. And the colleague doesn't see where amendments need to be filed. This is my first ever audit and I'm a bit nervous and was losing sleep over this and reading horror stories on the internet and second guessing everything I did, but all my numbers have backup and are defendable. The IRS auditor went to visit the client this week and he was impressed that they have adequate procedures in place; segregation of duties; files properly secured; No evidence of fraud! I now need to provide a copy of QB, Basis Calc, and support for COGS and Other Expense. I do need to have the client sign an audit engagement letter. Thanks for all responses!

It's usually a lesson I'm learning as opposed to a lesson I've learned.

So you're saying you don't want to hold her hand while she pays this off over the next 4-5 years, constantly reminding you of YOUR mistake without admitting her own mistakes of much greater magnitude? I think you're on the right track. Pay her the $194 and terminate. As long as she gives written acknowledgement of receipt of the $194, why should you care whether she sends it to the IRS or spends it getting her nails done?

Yeah, paper. Let the IRS argue with the ex if they want.

It could help with those taxpayers that want to file a return as soon as possible to get their refunds as soon as possible. Once they understand that they're not getting a refund prior to 2/15 at any rate. Right now they try and file as soon as they can and often that means W-2 and 1099 for small jobs and the such that they forgot about being received after they've filed a return. Really 2/15 isn't all that much of a delay - a couple weeks later than normal?

I agree with the additional needed regulation and scrutiny. However, the big tax mills will see this as another opportunity to loan money to folks at a ridiculous interest rate which due to the longer IRS processing, will increase the fees for those loans. For them it is win win but total loss for the taxpayer who seeks their services.

Write the check to the IRS directly, referencing her SS# and the tax year for the penalty. I would pay late filing penalty only. Get something in writing that she is acknowledging you paying the late filing penalty. Her late payment penalties will be much larger than that. For 2014 you are not liable for ANY penalties. In your situation, I would have electronically filed an extension the moment I realized I could not make the deadline. Side note, I would have told her "We are going to file an amendment and I will work on them next week." If she resisted, I would have handed her back her information and shown her the door. I am all for assisting our clients, but if an adult cannot or chooses not to read the calendar, that is NOT my issue to move into emergency mode.

I would have efiled the return on time or efiled an extension. Pay the penalty and fire the client.

Congrats and best of luck! We expect an update.

I have dealt with two of these letters and as Max W stated they are legitimate. In my case, I filed both returns and both were accepted. These forms are generated due to the taxpayer claiming the PTC and not reconciling using form 8962. Both returns, in my case, were a result of the insurance agent applying for the insurance for the clients using the market place and not telling them or giving them the pertinent information, Neither client had any idea of what their password, username or account numbers were. It was pure hell getting to talk to someone at the marketplace that was helpful or didn't appear to be agitated by our inquiries. Each client was present to during the calls. Bottom line, both owed an additional amount back simply because the insurance agent miscalculated their incomes and did not inform them that if they had a life changing event, they were to go online or contact the market place to make the adjustments. One client lost their job and has not income but is required to pay back 275.00. This could have been avoided by updating their account. As for your situation, I am glad you found the return rejected and I know jumping through the hoops for the identity theft is miserable. Just make sure you get the identity theft pin number from the IRS. Prayers for you and your parents. I too have an elderly mother and these times are tough to deal with.

The Internal Revenue Service is warning tax professionals that next year, a new law will require the IRS to hold all Earned Income Tax Credit and Additional Child Tax Credit refunds until Feb. 15 as a safeguard against identity theft and tax fraud. The correct address to the article: http://www.accountingtoday.com/news/tax-practice/irs-to-delay-tax-refunds-involving-eitc-and-actc-next-year-78387-1.html

Saddened to hear about your family's loss. Sending love and good energies their way!

Catherine, our hearts are with you and his family. So very sorry for your loss. Suicide from depression is in my family and unfathomable. Prayers for the family and all who suffer silently.

Catherine, I am so sad for your family's loss. I pray God will give you all peace and the love of his spirit.

Depending on the states involved the W2 just may be correct. You may need to see pay stubs in order to discern when income to state #1 began/ended and the same for state #2.

Oh Catherine, how tragic. My condolences to you, this young man's family, and all those that love him. I will keep you all in my prayers.

I too want detailed lists. It is important to be able to know what the total amount is made up of. Same on schedule A. I have had to defend a total amount entered on the mortgage interest line. When the IRS questioned the total, which at the time was weird they did so, it was relatively easy to show the breakdown and retrieve the necessary documents from the client. Had I not listed the detail, then we all know where that could have gone. Most of the software I have used allows you to enter details. Nothing worse, in my opinion, then a client who comes to you with a return that is messed up and no detail.

I would still do the Schedule C, just to hope to avoid any matching problems.

I called this morning & the first sales associate I spoke to "John" says they offer different promotions at different times, so May's early renewal promotion (in which we were hard-pressed to take advantage of), is different than this month's promotion of the early renewal price, w/ a free copy of the Deluxe version of The Taxbook. So I said, "I am being penalized for renewing in May, because you now offer a better promotion in June". He then said he would switch me over to my sales rep (which I never knew I had, BTW, "Will". Had to leave a voice my, because "Will" was not available. They should have never sent out "renewal e-mail promotions", to those who have already renewed. I am going to press this issue, as I feel they should have offered the Taxbook with the May renewals as more of an incentive!

A bit frustrated with the recent ATX e-mail, received yesterday, with the offering of a free copy of the Taxbook Deluxe along with the extended renewal pricing. What about the long time customers who renewed during the "initial" renewal discount period??. I am calling tomorrow, FWIW. Do not understand their marketing or lack of marketing. Feel like a sucker!

Eset NOD32 antivirus, Comodo free firewall (does much more than just firewall) and free Malwarebytes (but that's not real time protection like the other two) Would never use or recommend Norton or MacAfee. Too heavy on resources and not as effective as Eset.

I approve. Hope it helps.