Margaret CPA in OH

Welp, one of my clients got this and sort of freaked out. My first thought reading that they did not qualify for the EIP3 as their AGI was $158k was that I and ATX made an error. When I looked at the calculation, however, it was adjusted correctly as their 2020 AGI was $148k. The IRS letter said that $150k was the limit. Not true. It's phased out. The letter also calculated the balance due as of April 15 even though they sent a check in late March, Certified, Return Receipt, so it had not yet posted to their account. Then insult on top of that was the interest and penalty not actually due. I suggested they double check the date of check cashing and either call the number IRS showed or let me. Haven't heard their decision yet but it made me look a bit bad, I think. And I hate it when that happens - bad enough when I do make the occasional error. Well, I have made one or two...

Here is the reply to my request to do better with the quote for the renewal: Hello Margaret, I understand that in previous year you had 15% and it was probably due to the pandemic . As per this year the company is only giving 12% discount on Earlybird to all of our customers, sorry I am unable to make an exception . Please let me know if you decide to renew your 2022 ATX package. Have a great week! This is not from a sales rep or renewal consultant, rather a person in Business Retention (lots of titles nowadays). I had opined that it must be a challenge to be in Business Retention while simultaneously raising the price and reducing the incentive to pay early. I had not done the calculation to realize the net 'discount' was a whopping 1%. I just did the calculation for me. It's actually a net of about 5% discount not counting tax.

At least you were notified. I've not heard from my rep in a few years. I received an email from Josephine Shaw of the retention team on April 19 then today from Michelle Gonzalez my new renewal consultant (Senior Sales Business Retention) both about renewing now! Of course this is with a higher base cost and reduction from 15% to 12% early bird discount. Sales rep? What's that? Or maybe once you are a customer, you only deal with renewal consultants. This may be the first year I wait.

I got the email as well. Perhaps I should call, too. Did you actually talk with the rep? Answer was? I think I will call. It's a new rep (I don't think I've had the same one more than 2 consecutive seasons) and the message does close with "(a)s one of our loyal customers..." She is with the 'retention team' so maybe see how much retention is desired.

Client came this week not wanting to bother beforehand to discuss 2022 990 and income and expenses for new non-profit. State organization as LLC in order and self-submitted 1023 (I didn't go there yet as already submitted). Then I looked at the 2021 activity and self-submitted 990EZ. Sigh... Cash in entity checking account with EIN of $12,000 at 12.31.21, 0 on 990EZ. No contributions on page 1 and all zeroes everywhere. Sooo, there is time to supercede before May 15 but I'm wondering if it's better to wait until IRS responds with 1023 determination and amend. It really should have been 990N but client had no idea with 'advice' from attorney. There is more for 2022 but time for that, just not sure whether it's better to wait and amend. Thoughts?

20%? That's great! I think in the 20+ years I've used it, the biggest discount was 15% and now the renewal for 1040 package is just 12%. I've always renewed in May but think I'll wait this year. Maybe.

"Or at least changing to only doing tax returns for people I like and taking the rest of the year off. " What I've been doing for a few years now and love it! And I'm still not ready to completely stop. It's only about 10 weeks and this board!

Congrats to the long termers! I'm at 36 years after 18 years in molecular biology. I, too, intend to keep on keepin' on as I work to dive. Bonaire in June with my son as dive buddy! Happy vacation to all!

Beth, we are your friends here for sure. Thanks for letting us know of this event so we can hold you and family in our hearts.

What a scary event ending with a blessing! Cars are replaceable things and down in the ranks, as Catherine said. Ever since I've had employees and still with clients I've always said, "Family First." Everything else can wait for family matters whether that family is by birth or by choice. Thanks, schirallicpa and Catherine, for lifting us all. Now breathe, take the time YOU need to process. And give extra hugs...

Thanks, Lion, for the details. I've had several clergy as clients and was church treasurer managing payroll all that time, too, so have first hand experience there. I have been a subscriber of Church and Clergy Tax Guide for about 15 years and pretty much know this which is why I alerted the client to the problem. I did the research and it is possible for a clergy person to revoke the exemption with 2031. And not all clergy choose to be exempt and do not file 4361. It is, in my opinion, that this minister filed 4361 upon ordination per the denomination and hasn't given it a second thought since then. Until now. I believe the person responsible for this perhaps gave erroneous or no instructions to ADP which processed the W-2. Although I kind of blame ADP a bit because it does have housing allowance in Box 14. I guess little to no quality control. It will be sorted out but I had to allow for the possibility of revocation since it does exist. I'm not finishing this return without a corrected W-2 (most likely) or confirmation of revocation (highly doubtful). And I did recommend that she consult her local/state/national denomination even to where she was ordained.

I'm thinking it's whoever processes payroll at the new church she moved to in July - could be in-house our outsourced, don't know. I was taken aback when I wrote to have this resolved and husband (managing the tax documents) said minister wife didn't understand what I was saying. I wrote the basics and included links for the exemption, 4361, and revocation of exemption, 2031, and reminded them that for 10 years and through all the moves to different churches, none withheld SS and MC. Waiting for reply but said I won't prepare the return until I get a corrected W-2 or her affirmation of revocation. I just don't believe that all the other churches were in error.

I was shaking my head at this until I received the documents today from a clergy client of 10 years (other clergy clients for many other years so not new at this). She was transferred to another church and SS and MC were withheld. Nearly spit out my coffee! I'm so glad they are already extended because I don't think this will be pretty. Same denomination all this time, moved 5 times, first time this happened. Sigh...

Judy, we all feel your pain because it is ours, too. I swear the electronic signature option, IF they can figure out how to access (what is my password? how do I find it?) at least the directions and CONFIRM with a click and moving to the next place is hard to overlook. How many times have we all gotten forms returned with those SIGN & DATE HERE arrows still stuck to blank areas? Shaking my head.....

At least it isn't mid-march but won't these folks ever learn that anytime before April 15 is not the best time to ask for renewal? My price for next year, with that whopping 12% discount is only about $30 more but what on earth is the option for "ATX Standard Processing Download Only" for $80.50? How is that different from anything we've had before once the discs were discontinued? We have to pay extra now to download the software and for standard processing? What is the alternative, I wonder? And whatever happened to the community board on ATX site? I didn't often use it but was looking for something last week and didn't see it. Does it go by another name? Also discontinued? My license expires the end of this year and I really don't want to quit yet but, at 76 and with these annoyances, my clients just may have to move along.

Well, at least give her the bottle, maybe the Skittles, too.

You are definitely not alone - lots of good company around here!

'Back in the day' and even now, Form 8453 was the form which had to be mailed in with certain other forms, such as 1098-C and 8332. Purpose of Form - Use to send any required paper forms or supporting documentation.... When and Where to File If you are and ERO - you must mail Form 8453 to IRS within 3 business days.... I've had to use this for the above mentioned forms several times over the years but not recently. I didn't know that it could be attached electronically so happy to see that.

Thanks, Sara, I wanted to put on Line 21 but was a bit overwhelmed with the rather strong responses to put on Sch. C. So I put on Sch. C and it's done. He is still dependent for last year. IRS will get the tax. I'm tired.

Thanks. I agree with W-2 but that isn't what he got. I do believe it was one off but who knows? I suspect mom and dad would be extremely unhappy with paying for 4 years of college and working for a few months detailing cars then retiring. I just report, right? Since he will no longer be dependent (was mom's mom's in the divorce, dad got brother), mom is pretty much finished with him and I don't think he will be paying for me to prepare any future returns.

Client's new college grad just worked for a few months detailing cars and gofer stuff for about $2300. I don't really think it's a true Sch. C detail sort of thing. Is it appropriate to just have it subject to SE? He really isn't planning this to be his life's work and I think it just got him through the summer. Mom says he's pondering life now at dad's (ex-husband) house until life shows up in real time.

Verifyle is $9 per month. Ideally 2 separate email addresses but I just discovered that there is also a custom option for a second signature for shared email addresses (I have a couple of those, too) and numbers to insert for cc payments for 1040 tax due.

An easyish fix for you. Just have the client increase their withholding to some exorbitant amount - you will look like a genius, right? Ugh...some clients are simply not worth having. No fee is high enough for this kind of abuse.

Every 1098-T I have seen is for a calendar year. Box 7 even has a possible check if the Box 1 amounts received include amounts for an academic period beginning the following January-March. I think you other source is mistaken. TexTaxToo is correct. Maybe look at the copy of the 2020 1098-T for reference.