MsTabbyKats

She doesn't approach being "my funniest story..........". Once upon a time I had 3 pimps (yes, you read that correctly)...who I had to ultimately fire. (They were, technically, entertainment promoters.) However, they still send me some of "their girls", The girls are here on O visas...they're all "models" from places like Poland and the Czech Republic...and they get paid on 1099-Misc.

Oh...I did fire her. On 4/10/12 she e-mailed me to say she'd be in NYC "Monday" and has her stuff. Her "stuff" was about 1000 stock transactions....many of which did not have a basis (most were "see attached"). But, in the prior years (2009 & 2010) I had to hand enter each and every one. So, on 4/10/12...I was just not in the mood to do her return (even though she paid well). I think I told her I was "cutting back". I referred her to a colleague in MI who was more than happy to do it....but she didn't mailed him "her stuff" in a timely manner. Then, maybe after a year she mailed him part of "her stuff", but didn't follow up...although he kept reminding her. Then she called me...about 3 weeks ago...and said she was getting letters from the IRS...and my colleague was no longer returning her e-mails. I spoke to him...and he said he was fed up with her and didn't want to do any more work....and he sent me "her stuff". I tried to give the job to someone else (including on this forum)...but no one wanted it. So...I ended up raising my already high fee...and she came by with the cash. How could I refuse?

Hmmm....I always got "instant service" with the preparer's hot line until sequestration. And also...being referred to "complicated cases for foreign issues"....if I called the main number. I'm just really venting....I'm not expecting a solution.

I know it's "sequestration"......and yes, I have speakerphone. But, I need to "do other things" and make "other calls" so I can't tie up the phone indefinitely (and then get a disconnect anyway...lol)! My client doesn't have "an employer" per se. She does "stand-up comedy" all over the country. She does not have a clue about "what state, how much, when, withholding" etc. She said "Oh, you know, I think I did get more jobs in 2013..." Extension....what's that? I did 2011 for her about a week ago.... Edited to add....she pays me VERY well

I have a client who "doesn't remember" if she got any W-2s or 1099-Miscs for her work in 2012. So, I figured, let's fill out an 8821 and call the "tax preparer's hotline", and I can fax it in while speaking to the rep. Less than 2 weeks ago: One hour on hold (I kept getting messages that hold time was 15 minutes)....and then after an hour...click...it disconnects So...I faxed in the 8821 to wherever it's supposed to be faxed to. About a week ago: I call back the "tax preparer's hotline" @ 8:30 AM.....and again..."your wait time is in excess of 15 minutes" After more much than 15 minutes on hold, I decided to hang up and call the "regular number" in a few days....because the 8821 should be posted by then. Today...@ 8:30 I called "the regular number" and after 15 minutes I get a rep She said that the 8821 I had faxed in is not posted yet. She said I can fax the 8821 to her directly (I didn't know this....I thought you could only do this with the "tax preparer's hotline".) So....I faxed it to her Then, she tells me that it takes faxes about 20 minutes to show up on her screen! (Meanwhile she's probably filing her nails......lol) So...I'm holding for 20 minutes....and it's not there yet. Well, I have a life....I told her that I'd call back in another week or so....when something should be posted. Has anyone else had issues like this? As far as my client.... I informed her that if I cannot get information within a week or so....I'd just prepare it with what I have....and if the IRS adjusts it to add "forgotten income"....I'd amend!

Doubt it....she's really more of a comedienne...does stand up. Ugh...I'm not looking forward to this. Luckily most of it is "see attached".

I decided to do the job myself....I gave her a hefty fee and she's ok with it.

I'm not sure if I'm allowed to post "job offers" here.... But, I have a daytrader/actress who needs a 2011 return (she is a prompt payer and pays well) I don't want to do it because I don't want to do daytraders (part can be "see attached" and part can't) If this post is against "the rule" please let me know. If anyone is interested, please PM me.

Jack from Ohio...give it a rest. I'm happy. The client is happy. The auditor is happy. Are you unhappy because the client "didn't need to get someone with proper authority to represent him"?

Yeah...sure...if you want to drag something out. I'd rather go to the beach!

No, I don't agree about getting rid of "TRX". Is there any benefit? The company still seems to exist...and in the future, people who buy it or want to buy it might do a Google search. I think the information (or, should I say warning) would be invaluable. That's how I found this forum.

Neither did I....but it's absolutely what she said. She was very apologetic and humble. I don't think she wants this to go to "reconsideration" or "appeals" because it would show her "shortcomings". If I knew it was her before I picked up the phone, I would have let the machine pick up...and tape the conversation (OK...give me the lecture about that being illegal.).

My fee is $0....because I feel that if I prepare a return...I should stand behind it. If I can't stand behind something I do...them I would consider myself incompetent. He paid for tax preparation.....he gets follow-up. (He is actually sending me something...probably a fruit basket.) Why am I not out of the woods? Why am I even in the woods?

Apparently I'm a good swimmer. Why would a deduction be over my head? If tuition is deductible "based on certain things"...and if the taxpayer meets the criteria....and has bona fide proof...it's a deduction. If the auditor disagrees....you go up a notch. You don't need to be a PhD in taxation to figure that one out...although the PhD in taxation would sure like to charge and pretend "it's rocket science". IMHO...experience is the best teacher. Nothing gets me going like "fixing the CPA's (from the prior year) mistakes"....and charging much less for it.

So..an update. First...I've got to say that I have a hard time dealing with people who "are afraid to challenge authority", cannot "think outside the box"....and have absolutely no "sechel". (Google it...but basically, common sense) 1. I spoke with the "Practioner Priority" dept...and the supervisor there basically laughed at "taxation of scholarship applied directly to offset tuition" and said I should write a letter to "wherever" and have the client sign it asking for audit reconsideration. 2. I left messages for the auditor. I left messages for her supervisor about "audit reconsideration". 3. The auditor finally called me. She said...and I quote: "I'll be honest. I'm inexperienced at this. Please send me everything (which now includes copies of checks showing he paid the tuition and a letter from the sponsor of the loan...indicating he will repay) again and please don't ask for "reconsideration" or "an appeal". I want to go over the again and this time I'll work with my supervisor. I was unaware that a scholarship isn't taxable and I'll look up everything you're citing. I really just want proof that he paid everything for his education. I'm sorry this became a mess, and please feel free to call me if there are any future problems." So...my dear friends...I was far from over my head. I was correct. We are not going to "tax court". We are not appealing. All is well. (This is what happens when you know that you are right. You go by your gut..and you use your sechel.) Oh...and I hope those of you who get all "A"s in your tax classes learn to use "your sechel" when dealing with people in the real world. A bright person will always challenge "authority" when they know they are correct. Only a dull person would take someone's word for it...because "the teacher said" or "Circular 230 blah blah" BTW...My fee to the client...$0.

Do you always have to be contrary? A refund..by definition...means getting back something you gave. It should be re-labeled as "entitlement"....especially when someone files a Schedule C to get it.

Thank you for enlightening me about the appeals auditor. I'll discuss this with the auditor. But, I'm sure it's in within my jurisdiction to point out scholarships aren't taxable. Letter from employer, tuition statements from university, copies of checks.....not enough evidence? If the auditor needs more.........???

I think we are jumping the gun. I'm calling the auditor tomorrow (hopefully my POA is on file...if not, I'll have to hook things up differently). On the letter the client got he has to request the appeals officer and list "what he is appealing". This is where my letter, citing publications, pages and flow charts comes in. I'll update....no use in repeating myself.

Some people deserve, and I have no problem. But at least I wish they stopped using the term "refund"...because it's not. I may have written this a few months ago: One of "my foreigners", married, with a child...had a very low income. His "refund" was about $8000. He was the only person who ever questioned the terminology. "How can I get a refund of $8000 if I only paid in $500?". My response was something like "Welcome to America"...followed by this is why the economy is so screwed up!

I'm really not sure of what the auditor thinks about this. When the client spoke to her she asked for copies of his checks. If she already said "no" why does she want copies of anything? (this was a rhetorical question) If it comes to doing "legal research" or something out of my scope, I'll refer him to a tax attorney. I can only go by what the pubs say...and how I interpret it in regard to his situation. According to their flow chart...he qualifies. I'm just a simple RTRP....I know when I'm out of my league. When I had an issue with the IRS (DH and I get 1099-Rs from about 10 sources....and one was a partial rollover....too confusing for the IRS). I had to make flow charts and sent in copies of the withdrawal and deposit into new account. My first attempt was rejected. I went to my local office...and they said..."tough"...send it in by mail again. With attempt #2....I worded an explanation as if I were talking to a 5 year old. And it was accepted. So, as I said earlier...we are a long way from "tax court" and "legal research". We are at the "here's the facts" level...which is why I prefer to work with an appeals officer. If the appeals officer doesn't agree with the IRS Flow Chart/Facts....I'll refer him to someone else.

No...cause I'm not planning on working with her. I'd rather start fresh with the appeals officer, just as the letter suggests. I have serious frustrations issues...and will sound very condescending when I point out 2011 Pub 519, page 17, third column. I do hope you agree with me that when an institution grants a scholarship, and that institution reduces tuition payable based on the scholarship, this scholarship is not taxable, so even if it were in TY 2011 (which it wasn't)....this scholarship was not taxable.

I think that's an excellent idea. This was several years ago (5 or so)....and I also don't do many EITCs now (same reason...I discourage people off the street). I don't know what ever happened...I offered to re-do moms return so she could claim the 4 kids....but neither of them ever came back to me.

I'm just pointing out....the reason I started this thread was not to question the auditor's judgment about the education deduction. I know "there is work to do" to prove that. It was that she added in scholarship income, although there was no scholarship income for 2011....and she told the client she didn't know where she got her numbers from! Any scholarship he got prior to 2011 was paid from the school to directly offset tuition. So..there was nothing reported to the IRS. (Total interest/dividends is less than $65...so it's really a non-issue @ 25% is less than $10...so it's really a non-issue.) If I got snippy....it was because people were missing my point...and making this into "going to court" and I'm incompetent and derelict of my duties. So, I apologize for my snippiness.

I'd be the last one to count....but, where are the kids listed as residing according to school records and medical records? If the IRS were to question....this is what they would want proof of. I had a similar situation....parents not married. All 4 kids technically lived with their mom in one building. In actuality they bounced between mom & dad (who lived with his own mom across the street). Dad actually bounced between the mom of his kids and his mom. They each claimed HH with 2 of the 4 kids. Mom didn't have a problem. Dad did. Dad couldn't prove anything because the school/doctor had all the kids at mom's address. He could prove support because his mommy (kids grandmother) paid all the bills for her own apt. His priest wrote a letter explaining...that he supported the kids (which he did) but the IRS didn't buy it.

I assume because the taxpayer is a non-resident alien. He certainly isn't a large business! Doing my homework, I have a nice letter drafted...citing Pub 519...that scholarships, when used to pay tuition, are tax exempt. (Any scholarship he got was applied directly to this tuition...but this wasn't even for the year being audited.) I am also citing Pub 519 for interest...and that non-resident aliens don't pay tax on US interest (his is all of $30...no big deal) I can't find anything specific about dividends (also about $30)...and I don't think that's worth my time, since it seems to be treaty/visa related...which means a call to "complicated situations" and a long hold time @ IRS (Honestly...I think this rule changed in the past decade and I never knew. It used to be all dividends were exempt.) There is a nice flow chart in pub 970 about tuition...and I've flowed thru it. I'm not citing cases etc at this point. I'll let the appeals auditor go thru his letters and statements. Will report back tomorrow.......