FDNY

Good luck to you Nico, everyone deserves a second chance. A friend of mine had a felony, did time and it was a big wake up call for him. He is now such a model citizen it makes me look bad. He's even got me picking up litter on Earth Day. All the best.

Another interesting addition to this tax season is Credit Karma's offer of free federal and state tax returns with support. I'm sure to lose a few this year to them but they will surely be the ones I would be happy to sacrifice.

To be more understanding of clients that are difficult. Oh hell, I make that one every year and break it in February. I like Elrod's last one, that should be easy.

I've always enjoyed firing a client because it is usually for good reason and I got peace of mind. They are usually a problem for one reason or another. The last two I fired were a brother and sister, partners in real estate wanting me to be a partner in tax fraud. I politely explained that it would be better to find someone else that may suit their needs. Yes, they got mad and said I was abandoning them but I kept my cool, gave them my reasons and wished them well. Catherine, if your guy calls again tell him how you really feel about his case and what you think is best for both of you. Or, send him to me so I could fire him.

Sorry, but I needed to re check this as I was troubled that I may have had this wrong, now I think I was correct. This always comes up in my practice so here goes. Reg. 25.2511-1 (c)(1) states: The gift tax also applies to gifts indirectly made. Thus, any transaction in which an interest in property is gratuitously passed or conferred upon another, regardless of the means or device employed, constitutes a gift subject to tax. Dan is correct that in 25.2511-1 (h)(4) gift tax is owed only if money is taken out, but in the example, it shows that A and B opened a new joint account with A's money. A would only be responsible for gift tax if money was withdrawn by B. What I usually tell clients is talk to an attorney or consider just giving the child or other person just a signatory right on the account as usually it's an older person wanting someone to pay bills.

I stand corrected, simply putting someone else's name on an account does not constitute a completed gift, only when it is withdrawn as Dan states. I learn something new everyday around here.

I believe this is for a new account where subsequently a large sum is deposited by one owner and the other takes it out for his personal use. If the account is existing, as with property, adding someone else could trigger gift tax rules.

I run into this often with parents and kids. I always recommend a gift tax return. But in your case with only 40K and if account change is not made yet why not have original owner withdraw 12K now, then put it back after new year. No need for gift tax return. Usually I find out about clients making this change years after the occurrence. Happens a lot where they just put a kid's name on the personal residence instead of contacting an attorney (or me) for a reco on how to do this properly.

I can't cite any authority on this but the way I understand it if the participant contributes the catch up in the year he or she turns 50 then they are fine whether they are employed by the employer or leave employment by the end of the year. Then again, like you say, many government rules are stupid.

B, I would call the number on the letter at 6:30 CST and you'll get right through. They will verify your account with a few questions about your 2015 tax return, especially any 1099 payers and amounts so have them handy. Takes a few minutes. Good luck, The other B.. Merry Christmas, Bill

Thank you my friend. I knew I could depend on you for the special effect. All the best, Bill

Joy and happiness to all. While it is often said Christmas is not like it was when we were young, nothing says we can't still think young. Merry Christmas.

Jingle bells, Ready your Dells W2s soon on their way Oh what fun it is to ride With our community all the way Hey, Jingle bells, client yells I need my refund today Oh what fun it is to ride For the day we get our pay Jingle bells, ATX cells Tax bingo all the way Oh what fun it is to bide For the day we can shout Yay! Jingle bells, Jingle bells, Jingle all the way Oh what fun it is to ride On a one horse open sleigh It's Christmas! Happy Holidays to All, And to All, A Good Night!

As far as I know this is voluntary, I am not aware of any penalty for non compliance. I had a small business client, also an S Corp ask me to help fill one out a year or two ago and remember reading it was not mandatory, I guess it was on DOL website. But of course, if he wants to help the government out with their statistics I'm sure DOL would appreciate hearing from them.

I also needed to call because my cell phone is in my name Bill, not William (they're very picky), so I called when they open at 6:30 CST. Since, I'm an early riser it was not a problem and I got right through. Agent said wait time can be two and a half hours. Have available your 2015 tax return as they will ask questions about 1099s you received. You'll have to give the payer and amount. It needs to be exact, especially the payer name. Good luck, William

Gives new meaning to a very Happy and Merry Christmas.

Maybe opting out will discourage the ptin.org and other emails we frequently receive.

Thanks Lion. I'll be getting a few. A nice gift just in time to spread some holiday cheer to those accountants who are tough to buy for. I guess I'll keep the argyle socks for myself.

Yes, I would have helped them and yes I would take them back only because I know clients are not perfect. Once they return I would explain that they need to respond to your questions in a timely manner as tardiness interrupts the workflow process and could increase their price. Also I would definitely listen to your wife, they usually know better, just from their intuitive perspective, and it serves us well to obey, if we know what is good for us. I learned the hard way.

I have had luck with Control panel-Administrative tools-Services-then restart ATX, I usually do 13-15. Takes only a few seconds. There are also other methods. Yes, a royal PIA.

Yes, I've seen the same (only last 2 or 3 years), and of course always a hysterical call when they arrive.

If it were socially acceptable I would work totally clad in fine velvet. Why not, no one can see me on the top floor of a townhouse. Great way to be productive, alone and comfortable.

A little sambuca or anisette in the espresso does have a calming effect but only for the "children" 18 and over.

I guess it is up to us to decide how much of a friend, confidant, and advisor we decide to be with our clients. Knowing so many for so long makes it difficult to not listen as they consider you more than a preparer. During tax season I'll limit the other than tax stuff talk and will gladly call them back after the season ends to "catch up." But you know the ones that you just can't resist hanging out on the phone with because you happen to like them and they are nice people. Something I've been doing for a few years is I will record their birthdays on a calendar and make about 50 Happy Birthday calls. I don't sing, but they are really impressed you remembered them. These are the people I can consider more than a client and the few minutes I spend on the phone is enjoyable for them and makes me feel good that I did it. And the little old ladies that have been around forever, believe me, that makes their day, I did a good thing, maybe I'll get a room with a view in tax heaven.

They are doing an upgrade today. Phone services are also impacted. Take the rest of the day off and try Monday.