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Maybe this email was part of a research study to see how stupid Americans really are. The fakeness couldn't be more obvious. I have been flummoxed by the recent scam when the "IRS" calls and demands payment on itunes cards. It's still going on so it must be working. If I complete returns for clients who owe money next season and they ask if they can pay via itunes I will fire them. They are beyond help. I read today that instead of live calls scammers are now using robocalls and leaving urgent messages to call the "IRS" at whatever number. Seems they have learned they can reach more victims that way. As the older generations, who were raised to be trusting and trustworthy, die off I fear they will be replaced with younger people who have learned not to trust anyone or anything. What a sad society to live in that will be.

Your client has obviously become the unwelcome recipient of the infamous "enhanced electronic screening", a black hole from which some tax returns are never seen again

Longish wait but more likely you'll talk to someone with a clue. Only if you are looking for an excuse to tear your hair out. Or give a @RitaB style hug to the know-nothing drone who answers, IF you get answered and not cut off.

Yes; I was thinking along the lines of @Gail in Virginia. Non-qualified annuity is NOT a retirement vehicle; it's just a contract "give us money now and we'll give you money later and you hope it's more". Early withdrawals subject to penalty form the insurance company, not the IRS. But there are sometimes exemptions to those penalties. Read the contract.

I have done several and not one has been challenged. I will not file it just on the opinion they are insolvent. Nor will I do the worksheet for them. I send it home with and reviewing it with them and tell them to get a separate envelope and that everything they put on the form must have documented proof in case of questions. I don't ask to see the proof, I just make sure they have kept it then I go over everything with them and finally make the determination. In my area it's not that difficult as most have to do with either foreclosures, short sales, or loan modifications. The property values here took a tremendous hit and are just now recovering, so I was pretty sure that if a home was involved they were insolvent.

I am not an expert on annuities (or any insurance product, for that matter) but I thought that there were two different types of annuities. If he invested $400,000 from life insurance proceeds at one whack, I would not think that this is the type of annuity that behaves like an IRA/qualified plan. In which case, I would have thought that he could recover his investment without tax penalty although there might be penalty from the insurance company for early withdrawal. But I am quite willing to be corrected on that since I really don't know much about how annuities are structured.

Just watch out for that white truck trailer that looks like the sky.

I'll try and look for it tonight. I forget once I get home and the chaos there needs attention.

I disagree I use PPL on a weekly basis and have found it to be of great use. They usually answer with in two minutes and try very hard to answer questions. I always have a signed 2848 on file or ready to fax.

Get an upfront retainer. In our office we ask for 50-100 percent before we begin work. If someone hasn't filed for, say, five years, it's usually because they fear how much they will owe. When that fear becomes reality, they may decide they don't want to come clean after all. And if the IRS is already knocking on their door, you can bet they'll pay their taxes before they pay the accountant.

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What does the 1099-R show? The insurance would issue one if applicable. Otherwise, return of investment.

Edit to above post, the common penalty free withdrawal feature is annually, sometimes subject to a maximum # of years or % of original investment.

Pretty sure the over 55 exception is only for 401k's so I think penalty applies.

i received this email today. It get's my vote for "Most Obvious Email Scam "! I wonder how many recipients would actually respond to this ??? Supposedly almost 80 % of all world wide email are scams or scam related. "Hello You have been compensated mightily for sending money yet transaction not completed, reply "YES" details. Security Team"

That gullible -- or that scared of the IRS? If the latter, then the LONG history of over-reach and just plain old nastiness on the part of the IRS is at least as much to blame as gullibility.

Hey Catherine, keep looking I would like to see that cartoon. But giving all the info above would we still need auditors?

I agree with Jack. I add the ext to the name and then roll up the prior year for use as a finish return. Sometimes I duplicate the ext return and use this copy to finis out return. This way I can see where I may have missed the ext amount without messing my ext return. I keep the ext return marked completed so that it will not change.

Agree 100% Retainer up front in cash, and then check for the security strips...

1 out of 7 will respond and be victims. YES, Americans are that gullible.

If you can call what is available, "in use." Be prepared for a disappointing experience. Much less helpful than two years ago.

I have a couple that were filed in July that are sitting there "being processed". Wondered if IRS had taken a little vacation. Perhaps they have a beach address that it should have gone to.

Practitioner Priority Line 866-860-4259 IRS standard contact line 800-829-1040

Daughter can preserve her carryover losses while filing as a dependent. If daughter paid more than half her own support, she is not a dependent child. If mother did not pay more than half her daughter's support (plus meeting other qualifications), then daughter is not a dependent relative. Redo the worksheet next year to test. And, if mother is paying anything for daughter, have it be medical expenses directly to the healthcare providers so mother can deduct even when she does not have the dependency. Get mother/daughter to call you before selling daughter's investments, so you can calculate how much to sell in a year to preserve the dependency deduction -- if that is the goal. Or to pay the least tax for the two of them -- if that is the goal. Remind them that you could have helped them BEFORE they made financial moves but that options are much more limited afterwards.