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Terry, and please learn also "any returns coming in after XX date, will be put on extension". No if, buts, or ands. Heck, the last few days of the season, I wasn't even filing extensions for any new clients; I directed them to IRS.gov and told them to do it themselves.

Save your money. Make the necessary notations in their file. If your phone system has the capability of printing call history, do that as well. Then sleep well at night. No matter how large a hammer you use, you cannot fix stupid.

John I agree and this indeed was my first thought to pay the penalty and cut my losses. However, I have my reasons for wanting to pay the amount directly to the IRS. Otherwise they will never get which is not my problem. There is something to be said for principal though. Either way, when I pay, I will have corrected my error and will not loose any sleep over this one.

Good luck!

Thanks for the input! I live in the KC metro, so 75% of the returns I do are multi state, MO & KS. So multi state comes with the territory. The old state is CA, and the new state is W V. It looks like the residency state for the whole year was CA (which it should not have been) and the worked in state was W V. The state withholding is about 20% CA and 80% W V. Which makes sense, since the the marginal rates are about 9.3% in CA, and 6.5% in W V. (Taxed in work state first, and then taxed in resident state second) My guess is the new employer has nexus in the old state, so it didn't even hit the radar screen. I prepared a NY return many years ago, and was just surprised at what I experienced. Even as a "non-resident" you are basically preparing the return as a resident, and have to prove the other sources as outside of NY. Eye opening. Of course this is also a mess, preparing 2012, 2013, and 2014 returns. Thanks all. Really appreciate it.

Ms TabbyKats, Thanks for your reply as you are correct and what I should have done has been clearly identified. I can guarantee this will not happen in the future. This whole thing started with me trying to help a client who told me they didn't have the money to pay my fees. This is one of those instances where my heart got in the way and it cost me. Yes, I did get paid on April 20. Yes, I should have filed the extension and added those fees to the total but I didn't and now I have what I have. To add further, it took a week for the client to return to my office and sign the 8879 forms which we all know I could not transmit the returns until the forms are signed. This is where things went South because I once again offered to help if the penalty was assessed but had no idea it would take so long for the client to sign the forms. Nevertheless, late filing is still my fault. The Sunday issue just occurred two days ago. The client accuses me of not answering my phone which is why they showed up in my back yard unannounced and uninvited. My business phone is an Android mobile phone and I have not received any phone calls from this client since April. This client has become a PITA. I have office hours just like everyone else regardless of where my office is located. It is really not my concern how the IRS applies the payment. There will be no misunderstanding between the client and my office as to what the payment was for and this will be well documented.

NY requires that the NY state wages on the w2 match box 1. It's a PITA because you must have the pay stub, and possibly a whole lot of other information to figure out what is actually taxable to NY. What are the state's involved? NECPA's employer is wrong, and may not have registered as an employer in MO; a big issue in itself. I have a client whose employer FINALLY stopped withholding VA tax on out of state employees. Their old accountant was filing as though the wages were VA source income (and the client lives in FL, so no credit). I got them back over $15,000 in incorrect withholding. Unfortunately two years were out of statute.

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.

QF says that is one of the advantages to employer and self-employed plans. Withdrawals must still begin by April 1 of the year following the year the account owner turns age 70 1/2 but, as long as the individual still has earned income, contributions are allowed. I did this and intend to do the same for the next couple of years that I intend to keep working. I am 70 1/2 this year.

True... HH filing status in that case. In order to comply with the court order, she would have to sign over the exemption with the 8332. Without that form, I don't believe he can claim the children's exemptions even if he has the court order in his hand. Didn't the IRS get out of that legal battle years ago, and now accepts the 8332 exclusively? I have many clients doing that dance, and I follow up with the 8332s in every instance. It gives the exemption ONLY to the non-custodial parent and the custodial parent maintains the HH filing status.

So sorry for your family's loss, Catherine. Prayers to you and your family.

If the father left the house before June 30th, last year and the children stayed with her maintained that house and was the main home for their children, she qualifies for HH regardless what the Judge says.

I am so sorry Catherine! There are no words that can convey my sympathies. Life is hard, of that there is no doubt. The taking of one's own life, besides being an act of desperation, is also an act that defies logic. So often we frustrate ourselves by trying to figure out the "whys" and "what ifs". The fact of the matter, suicide is an act of non-logic. Trying to apply our sense of logic to it, simply frustrates us. My own son, also named Eric and 26 years old, stymied a would be suicide just last week. When the dust settled, he was more distraught than the would be suicide victim. Suicide, and everything about it, defies our sense of logic and rationalization. I will pray for Eric and his family and you and your family. And even so Lord God, I come to you with a heavy heart for Catherine, for her family, for Eric, for Eric's family. We do not know what troubled Eric to the point where he could no longer tolerate it. But we do not have to - because You know. I am so thankful Father that You are sovereign - in the big things, in the little things, in the things that we understand and most importantly in the things we don't. And so it is, O God, that I place these things in Your hands. I pray that all of those that are affected by the passing of Eric will be able to turn to You - not for answers to their questions, but to simply rest in the calm of Your love and peace. And even at a time like this, it is my prayer that each of them will be able to find that peace that defies all understanding; that peace that can only be found in Jesus Christ, my Lord! I pray that you will take Eric and Eric's family, and Catherine and Catherine's family into Your loving arms and just hold them. I pray that You will continue to be with them during this - their hour of need. And in this day and the days to come, I pray that You will be with each of them in every step that they make and every breath that they take. I pray that You will surround them with loving people that can help them through this time. And if not that, I pray O God, that You will send Your angels to stand watch. Please, O Lord, hear my pray. Thank You Father. I pray these things in the name of my Lord and Savior, Jesus, the Christ! Amen and amen!

The IRS will follow its established regulations concerning dependency, etc.. The county judge has no authority over what the IRS regs are nor how they are enforced. This has been standard IRS policy since 2008. You may want to consider terminating your relationship with both of them. Or, buy stock in Excedrin Company.

also, its expected to be replaced within 10 years

The government should stop RALs

Will keep you and the family in my prayers.

So sorry. Prayers to all. A client's brother in his 20s, similar story. Way too young. We need to work on mental health for all.

Very sad to hear. Will be praying for your nephew's family. Just had a client tell me of an almost identical story about his sister's son last week, also in his 20's. This has to be devastating to a parent.

So got an upgrade to Advantage for that much, or maybe a bit less. Not in the office, so I can't look at the invoice no Tax book though.

So so sorry Catherine.

So sorry, my friend. Praying for your family.

Very sorry for your loss. Depression is a very misunderstood disorder, I trust your family has the support and comfort needed at this tragic time.

I am so sorry for your family's loss. Fighting depression is a terrible battle. Sending prayers.

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.

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.

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.

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.

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