Margaret CPA in OH

Randall, the trustee thing is an extension of the trustee role on the now deceased grandparents. I really don't do anything as they are all managed accounts. I just have to keep track that distributions are at least the annual income but do not exceed 50% of the adjusted value. And prepare the returns... No, I never race on Thanksgiving. Probably should but somebody has to cook! I did the Queen Bee (third in my age group - old lady - for the second year) and as a coach with a first timer in the Indy Monumental Half Nov. 7. After some medical stuff, I'm back to training next week for the full Flying Pig. Another new age group and I intend to win my group in the Queen Bee in 2016. That is if I am still upright and mobile in my dotage. Good luck to you if you race! You will earn that extra piece of pie. Lion, I have only a very basic website primarily for the email and domain. I've already checked and the cost to upgrade to accommodate a portal is too much. ATX is my software but, again, more than I am willing to pay for a portal. ISP is Time Warner Cable. I will check but kind of doubt they have anything. Thanks for the suggestions, though! With the information about the Adobe possibility of encryption (and it can be the pdf file), I feel mostly okay sticking with that and having the clients mail back the 8879. Most folks mail or fax me their data now. I don't think anyone emails it. If they send originals, I mail those back after scanning.

Randall, your query prompted me to look more carefully at my Adobe 10 Pro security options. I can (and am sure you as well) choose to encrypt with either password or certificate. If using 10 or later, it is 256-bit AES. Check the online help for security options and read carefully. I believe, with a strong enough password (and it rates them - last 4 digits of SSN is weak) and letting the recipient know they must have the latest Adobe reader to access file, this will work. I have been depressed trying to find a solution that doesn't cost (to me) a small fortune. I have decided, I think, to use the password option on my Adobe Pro 10 but with a much stronger password - maybe street name plus last 4 digits - to send the pdf of the tax returns then instructing the client to only fax or snail mail the 8879 and NOT TO EMAIL! With only about 50 clients I just can't justify the expense of a portal and equitably share the expense among them. And many are not tech savvy enough to use them anyway. Yup, 3 years left as trustee on 6 trusts and I retire. This gets more complicated (and I'm not talking tax code - that's another story!) every year!

A client has begun a growing business by preparing custom drinks, alcoholic and non. She uses cut fruit and other added ingredients which she has been preparing in her home kitchen. She is located for 9 months of the year in the farmer's market which supports her in an outdoor stand. As the business has grown to include private parties, she is having a prep kitchen area installed in her basement including a sink, refrigerator, and freezer along with counter space and storage area. I believe this is akin to having a home office, business workshop or other strictly business workspace. She wants to segregate her business from her personal space. Anyone see objections to this arrangement and proper deductions, depreciation, etc.? Please share your thoughts.

Thanks, Catherine. I have noticed brighter colors in the other eye done in June. Focus? Well, I have worn glasses since age 6 and still have to wear them except, for the first time ever!, to drive. My vision is the opposite of 60+ years of nearsightedness. Still struggling to get used to wearing glasses to read in bed - that is not an improvement, in my opinion

Thanks, Catherine, again! I will look at this tomorrow more carefully. Still recovering from second cataract surgery this morning. This could be just what I'm looking for

It seems there are many options to encrypt outgoing documents (tax returns). I am looking for the way for clients to return the signed 8879 securely. From what I can tell, that entails using a client portal so the client doesn't have to have a program installed to encrypt on their end. Or am I missing something major (not unlikely!)?

Anyone here use Leapfile? It was mentioned in JofA. The price seems reasonable enough and I don't have to monkey with my website.

I think Teddy is adorable! I had no idea a porcupine would be so vocal.

Thanks, Max! The letters just arrived in my mail today. They are, indeed, CP523's. I think that the amended returns showing, mostly, additional tax due, IRS claims the entire tax wasn't paid. As it happens, she did pay the balances due for 2 of the 4 years and has a refund due for one year. From May 2012 until January 2015 she had been paying $550 per month but in 2015 her extra outside self employment dried up. She negotiated on her own a decrease to $200 per month faithfully paid through September. There is no way she can pay $30,000 within 30 days. If I use the 72 months you mention, the payments are $417, probably manageable though tight. In any event, I will be on the phone tomorrow and let her know about OIC as well. Stay tuned!

Thanks for the replies. It sounds as if options are available and I will research when the paperwork arrives. This is a first for me in all my years of practice. Guess I've been pretty lucky with clients. There have been some wrinkles along the way but this is by far the most expensive situation. I took her on last year as she is engaged to a long time client who finally convinced her she would do well with professional assistance. Hope I don't disappoint! And hope I get paid... (I will, no worries, but it may be a while)

A client owing back tax for several years primarily due to now ex-spouse's undeclared income had an installment agreement before I became involved. We had to amend the last 3 years for a variety of reasons (errors, self-prepared, etc.) and have finally had all those accepted. Now IRS has cancelled her installment agreement and states (in her email summary, I will receive the letters in a couple of days) that her balances for each year are due immediately, a total of nearly $30,000. I do have POA for all years for her on file but want to be prepared for some action in her favor. She certainly has nowhere near this amount of money, her ex, a homeless druggie now, has no money to pay his share, and she has been paying monthly since May 2012, over $18,000. They applied her payments to the most recent years thus driving up the accumulated interest for the earlier years. I've never had a client in this much tax trouble. What's a suggested route? Is OIC an option? Any advice would be appreciated. She so desperately wants to get this behind her but the accruing penalties and interest on the tax and penalties are crushing. Thanks for sharing suggestions.

Dear MsTabby Kats, I am so sorry to hear of this development. I certainly pray for the outcome predicted and congratulate you on your decision to step away from unneeded stress. How wonderful that things with your practice worked out so well and so quickly! Sometimes it seems this was just waiting in the wings and right choice. I do hope this doesn't mean we won't still be hearing from you. When you are back to normal, do let us know and let us support you on the journey. And let the buyer know of this great group, too. Hugs from afar...

Sales tax collection is a fiduciary responsibility. The money did not belong to the client, it belonged to the state. Client was personally responsible as a fiduciary, money never belonged to the client so cannot be a deduction to the client. There likely should be/have been an adjustment to gross sales leading to net profit or loss, however reported. Unremitted sales tax and payroll tax has been the problem with many small businesses that use that cash as a personal cash account.

Thanks! I guess I was using the wrong search terms, not for the first time. So will do this even though the 'business entity' was just a sole prop. Thanks again!

A client sold her rental property and no longer needs an EIN for Forms 1099. I don't think there is any way to 'disable' or end its life but thought I would ask. I didn't find info in the instructions. Eventually I'll need this, too, when I stop working. Ideas?

Yes, one of those annoying things designed to aggravate. There was some discussion about this a few months ago. One could tack on another user fee or prepare them in the software and use a free efile method, I think. Not for the first time - retirement looks better and better...

I have a client managed by Merrill Lynch advisor paying 1%. The advisor is, in my opinion, doing a lousy job of actively managing the portfolio, however. I have 6 clients with portfolios managed actively by a local advisor who charges 1% for up to $1,000,000 in value, 0.75% for $1,000,001-$5,000,000 and 0.5% for over $5,000,000. Another client with a different local advisor is charged 1% and with a portfolio held with USBank pays a graduated fee like the one above. Both of these are actively managed. This is, of course, different from whatever internal mutual fund fees may charge. It isn't clear if your client's advisor is charging this over and above the internal mutual fund fees and is not actively managing the portfolio. Nonetheless, in my opinion, this seems high. Perhaps it's time for the client to interview a few other advisors. Then again, what has been the total return on this portfolio? Sometimes higher fees result in better performance.

I loved both of these! I'd seen the Aging one before but this was so timely today. My husband's 65th birthday is next month so I want to have this ready to run when we gather for the singing thing. I decided to have a picnic buffet at home so this is perfect! We recently attended a 50th party that involved a scavenger hunt for the brought gifts. First time for me but so fun. Great idea to share the other one with teachers. How wonderful to see the creativity of so many folks!

SaraEA, so sorry you couldn't see the link. It shows the cat totally ignoring the cat door, reaching up to the regular door handle (lever style), opening it and strolling right in. Should your cat be so talented, the cat door would not be a luxury but an unnecessary nuisance. It would probably just serve to obstruct entry with the recent catch. I have one indoor cat with access to an enclosure outdoors and one semi outdoor cat. He's older now and prefers to stay in about 20 hours a day, sleeping for 22 of those. He hasn't brought in take out but did upchuck some chipmunk size bones once. When he goes, no more outdoor cats for me!

Amazing! I've seen many kinds of pufferfish and others on my dives but never anything so beautiful created by one. Thanks for sharing this.

No, don't remove it. It's good to know we all make mistakes and 'fess up to it. Especially the adjusting the screen thing. My screen is so adjusted, I no longer know what 'normal' is! Thanks, Rita, for making sure we know you are normal!

Now that's a beautiful thing! I will try to add the Schedule C pages and Schedule E pages as I have several of those folks. Thanks for all the hard work and especially for sharing!

Thanks for the link, Catherine. I will definitely check it out. Meanwhile, I was excused Wednesday until Thursday, Thursday until Friday, Friday until Monday but have to check in again at 4 pm Monday. I was called once when living in Boston and loved the idea of one trial, one day. This method is, well, nuts! I may yet be put on a jury next week for up to an indefinite time. Well, my civic duty... I will let you know more about Boston as time gets closer. Somewhere between 16-22, wedding is the 19th.

Thanks for the sympathy, Catherine and others! I begin jury duty tomorrow for 'two weeks or until dismissed' and know it will be even more challenging trying to get answers and process that last return for 2 German citizens who finally got his ITIN last month. I really don't need this. So I will be in Boston again in September for a week and a wedding. Maybe we can have lunch again and I can see your new digs. Stay tuned! Hmm, the above should have been posted Sunday, somehow I goofed. Meanwhile, the attorney and I finally talked. Her advice was to provide the information from the irrevocable trust dates (grandfather July 2010, no cg, no tax; grandmother September 2013, small cg, no tax) and reiterate that, until the revocable trusts became irrevocable, beneficiary was only potential beneficiary and had no right to info prior. And she could call the attorney or engage a UK-US trust tax specialist and convince the trust attorney otherwise. Beneficiary is vacationing in Italy now so don't know when the fit will hit the shan! Once again, retirement looks better every day...