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Congratulations Tom. Good thing the test doesn't have a "Technology" section.

Yesterday, I am in the middle of my compliance test for Fee Collect when the power goes out. My monitors and computer are fine, because they are on a battery backup. So I decide to finish the exam before I shut down the computer. That is when I discovered that my router to the internet is not on battery backup. The internet was down and I could not submit my answers. I need to put my router on the battery backup. I don't know why that never crossed my mind before....maybe I am getting old. But I passed the test both times.... Tom Newark, CA

I don't audit, current or past years or prior preparer. But, I have to read the prior returns of a new client to see if they have a capital loss, NOL, how many times they took the AOC, who the partners/shareholders/beneficiaries are on 1065s/1120Ss/1041s, whether the person sitting at my desk has been the tax matters partner/executor, compare year-to-year to give me clues what might be missing, get the EIN of the childcare provider, are paying back that homeowner's credit, did they already use up the lifetime energy credit, get depreciation schedules, what was their state refund/did they itemize/compute how much is taxable so looking at prior year AMT, and on and on. I'm not looking for mistakes. I'm looking for information to prepare the most complete and accurate returns for my client this year.

How long does it take you to complete an EITC return? Those are a lot of questions. We do very few EITC returns but have many with the CTC (a few with ACTC). I think we are in a worse position than most because we know almost all of our clients, remember when their kids were born or how happy they were when they got into their first choice college, so we may tend to skim over those due diligence requirements because we already know the answers. Now even that's not enough, we have to have documentation. Prices going up....... The AOC will be the worst because we have to have the account payment transcripts. I usually only request those when there is an audit letter (quite common where there are 529 plan withdrawals and education credits claimed). Now we'll have to see them for everyone. They are not easy to decipher. Would anyone just accept the 1098T when there is like $35k tuition billed and $5k in scholarship? I am so mad at IRS for giving the schools another year before they have to fill in the "expenses PAID" box. They've already had nearly 20 years to get their computers reprogrammed.

I'm going to take that as a compliment !!

Just had a new client drop off their return from the prior preparer. Who had been paid $100 to prepare a return with a $260k gross Schedule C (truck driver) and Avon Sch C for the spouse. Office in Home, Sch A and EITC! There is no depreciation for the over the road truck, but $145k in truck expenses. The Sch C's netted out to about $14k. The Office in home form? 6.25% use of home, but all the entries went into the "Direct Expense" column and not the "Indirect Expense". That generated a 12k OIH deduction, instead of the actual $750. Between the mortgage, the MIP and the RE Taxes, the client paid about $23k to just live in the house. Good thing they got over $5k back in EITC. Had to buy the food for the two kiddos somehow.. During the initial interview, the said they needed $10-12K a month in cash to live their "lifestyle". And now, the old return.... Sheesh. Rich

Works out great when we don't take vacations!

You complete me.

Merry Christmas to you and yours from me and mine!!! God Bless us - everyone!

Good job! Good job!

I have used the method that Rita describes for many years and have posted it here more than once. It also works for 1099's that should have been reported in Box 3, but were in Box 7, changing the wording to "......reported on Line 21".

How do you know what sites are risky? I try to be very selective and I would say that I am only on safe sites. Most is either on this site, My ATX, IRS, Banks, Ect. Occasionally I will Google a news item and read a story, or if I'm having a problem I Google for a solution. How do you know which are safe and which are bad? I also have antivirus and adware software that I run daily. It never catches anything. I used Avast when the big bug got me and I guess from what my tech guy is saying I'm running Viper now. So honestly I don't know what else to do except to stop going on line and in our work that simply not an option.

Merry Christmas and a VERY Happy New Year to all my friends here!

And a happy, healthy and successful new tax year!

I've had a battery backup on my modem and router for at least 16 years, partly for surge protection for the modem and the network, but having the internet not go down with a power outage is a lot more necessary these days!

Sarah, You are right, it seems to take a long time for those question but remember, that most questions are yes or no or simple answers. Once you do it 100 times, the relevant questions are in your mind. Also remember that when they are MFJ, all you have to do is to prove relationship, proof that the live with them for more than 6 month and the process is quick. What I hate is when people have a EIC for $7, I would rather pay those $7 from my tip jar vs preparing the EIC forms, questions and documents. Of course I cannot leave those $7 out because then the tax return will not be complete and accurate. Gail, No we are talking, why will you audit returns for the IRS when your new client brings you open years tax returns prepared by another preparer? I have enough work to cover my back (end of it) on the returns I have prepared and I don't have time to check open years when someone else did the work. "Just my rant for the day" Adapted from Gail In Virginia ATX Forum, Dec 21, 2016 I hope my bibliography is accurate using ALA.

Firefox warns me about suspicious sites (sometimes falsely, but better safe than sorry), and Eset antivirus monitors my internet traffic and blocks malware. I have the same setup at home and since my SO is a bit naive about these things, it has saved us on more than one occasion.

It would never happen, but I am so tired of being the unpaid auditor for the IRS that I dream of all professional preparers deciding one year that they just aren't going to put up with this nonsense and quitting. I don't think the system can get along without us anymore, and I would love to have a strike to force the IRS to acknowledge that. Aren't any of our professional organizations doing anything to fight the IRS on these onerous due diligence requirements? If I ask my client about their circumstances, I should not have to make them prove their living arrangements and their children's living arrangements to me. Just my rant for the day.

I get emails all the time about my timeshare and I don't even have a timeshare

Most Time-shares can be sold on the secondary market. This is one company that does that. Some are disreputable, but this one looks like it might be OK. Would certainly do a little more checking. http://www.webuyandselltimeshares.com/

I don't think it's that easy to get out of them. The catch is that buyers sign contracts agreeing to pay a monthly "maintenance fee" for an unlimited period of time. Apparently it can go on for years. People can't get out of the contract and the TS company sues, turns it over to collection agencies, and ruins their credit. I almost got into one several years ago - a mailing offered some cash and free days in a Branson hotel to attend an "information seminar." I thought it would be a short film in a group setting. Uh-uh. A dozen salesmen in spiffy sharkskin (appropriate attire) suits appeared and one told the receptionist, "Don't send me any more farmers from Iowa" (he apparently wanted high-rollers only). They took couples to separate rooms and began a high-pressure (fire-hose strength) spiel beginning with a $20K deal that reduced in $2K increments all the way down the keyboard to $900 wherein we and another couple jointly bought a one-week stay at a swanky place there in town. Luckily, that was the only thing for sale that didn't involve a TS contract with maintenance fees. Actually they made the TS sound so good that I wanted to buy one, but was saved from this lunacy by my wary wife who said "$10,000? Are you nuts?" Around town later we saw an office with a huge sign advertising: "CAN'T GET OUT OF YOUR TIMESHARE? WE CAN HELP!" According to the article below many of those companies are crooks too and there are lots of "J.K.Harris" type operations scamming those who have already been scammed once by the TS guys. http://community.lawyers.com/forums/t/89938.aspx

I just did one of these. You have to do two 2848s. The living spouse signs the form of the deceased with the title of "executor" or "personal representative."

IRS.gov

This morning in the McDonald's drive-through lane, my wife handed money to the cashier who said "No. Keep it. The person in front of you paid your bill." Touched, she said "I guess some people still have the Christmas spirit. Okay, take this anyway; I'm paying for the people behind me." She then pulled up beside the car in front that was waiting for an order to be brought out, rolled the window down, and called out "Thank you!" The lady smiled broadly and replied "Merry Christmas!"

Every time I get a stream of Viagra ads, I always ask myself "How did they know...?"

https://www.irs.gov/pub/irs-pdf/f8867.pdf Many posters here say they do few or no EIC returns and the old 8867 was annoying but not a major PIA; however, I think several of us still do CTC/AOTC returns. You're exactly right - that form was duck soup compared to this new combo-monstrosity which could be substituted for an NYPD Blue interrogation. Quite interesting is the question "Have you determined that the taxpayer has not released the (8332) claim to another person?" Well, I can ask, but if the answer is "yes" with an unconvincing facial expression, would I be required to track down the other party? Another attention-getter was page two's blunt-trauma ending statement: If you have not complied with all...you may have pay a $510 penalty for each credit...". You're a better man (or woman) than I am. I ask for a report card, an insurance card, and a medical bill with their name and address on it. But if I go with the new marching orders, then IRS really can accurately describe me as their "partner".

I have been doing that for EIC. A lot of my clients get that credit so doing it for the other two credits will be easy. I keep school records, birth certificate if children are 5 or above. If they are not in school, I keep their vaccination records and insurance cards. Some of them have free insurance (better than yours and mine) from the state or Federal so I keep those records too. So now, I have to do the same for those who only qualify for the child tax credit or additional child tax credit. For educational credit, I have always kept 1098s and payment records. I have asked for 1098s and proof of payments because during an audit I have to show the IRS where the numbers came from. I heard before that some preparers on this community reject EIC clients, so now their rejection rate will be increased. Soon, we will have to audit returns before sending to the IRS. On top of that, by doing everything electronic we have helped with the clerical duties at the IRS centers. Ironically, the big abusers are preparers who mail in their forms, don't register with the IRS, don't have a PTIN, and they don't sign the returns. There is a guy (and assistants/associates) who was here in DC doing that and more, DC was on his case so he moved to MD and he has been in business for YEARSSS. He has a 24 hours tax preparation business during tax season and people make appointments at 3:00AM they end up waiting hours before they get in front of this preparer. Vans full from people come from NY and other places to have their taxes prepared there.

Saving on SE tax is not a forward-thinking plan. Does your client want to collect SS someday? The more she makes the higher that monthly benefit will be. I remember some time ago when SSA started to send everyone a statement of projected earnings each year. Amazing how many self-employeds suddenly showed huge increases in their profits. Wonder if looking at those statements that showed they could expect to collect $200 a month had anything to do with it.

Merry Christmas!

Yes, Merry Christmas.