BHoffman

Oh, yeah that too

Client Email to me today: "Don’t beat me up. Here are all but one. The brokerage was supposed to have faxed a statement on the withdrawals from my IRA’s One was $5k, the other a little over $15k. That was an accident. And I DID have 10% of each ‘withheld’ for taxes. Faxes never came. I tried to log in, and could not. I tried to call but nobody was there. I’ll try first thing Monday. I cannot receive faxes. It was supposed to go to my wife's office. Send me your FAX number and I will have it sent directly to you." My reply: "Haha! No beatings for you. Your tax return is on extension, so there's no emergency regarding the paperwork. My fax has been broken for about 6 months." Liking those extensions this year And "Don't beat me up"???? I have gone off on this guy before for the last minute madness. Every. Single. Year. Except this year.

It's a nice idea, but I don't want to do every year so I don't do stuff like that at all.

Residential rental 27.5 years Commercial property 39 years

Look at box 13 with code R. Make sure you treat the deferral as guaranteed payments. Report on line 28 of the 1040.

JohnH - I knew I saw something about this and searched the Tax Book forum and found that thread. The IRS is supposed to notify the taxpayer if the extension request is denied. If no notification was received by the taxpayer, I'd argue mighty hard that no penalty should apply retroactively and that reliable estimate was possible at the time the extension was due. What's the difference between numbers that are way off from the final result or zeroes? Neither are a "proper estimate", and both could be from "information available". Sigh. I don't like to make extra work for myself, but perhaps should rethink a little about the zeroes on form 4868. Fortunately, I only have a few returns where I haven't entered anything at all.

One pick up left and all the 8879 forms are accounted for I have more extensions than ever before. Going to see how that works out. Have a 12 year old bottle of Glenlivet gifted by a nice client to celebrate our twelfth year of doing business.

HRB didn't build that. I think Intuit paid the most in lobbying bucks.

The destructions say "information available to you", and that the IRS will contact the taxpayer if the extension is denied. I think it's an urban myth that the garden-variety taxpayers extension request will ever be denied because of all zeroes. Not sure about those who might owe zillions but I've never heard of it happening.

I have a client who puts all of his docs in nice neat folders labeled "income", "medical", etc.. All of the docs are in plastic sleeves so I remove them to copy, and then take the time to replace them exactly as I got them. I asked him once not to do that but he said that's the way he's always done it and is afraid he'll miss something if he changes the routine. OK. I inherited this client from a retired CPA friend, and she charged him a high fee, so I just didn't change that.

Oh, you guys are GREAT!! I have a few clients who need extra time to fund their SEP accounts and want to pay with the extension request with a check because they are fine with direct deposit, but object to direct debit. I'm always so nervous, and now I can put that behind me Thank you very much!

Today two clients came by to pick up their tax returns. One brought me a 1098 he forgot to include for the purchase of a new house he forgot to tell me about. The other one brought me a 1099R because she took RMD for the first time. Reprint, reassemble, new payment vouchers...ick.

He didn't pay direct debit, and I couldn't remember whether I sent the 1040V or not . I don't think I did. At least I do have an ACK for the extension, so I guess no harm no foul.

Client needs to extend his tax return in order to have time to fund his SEP. He wanted to send in full payment of his taxes with form 4868. I sent him the 4868 with the amount filled in. I also mailed his tax returns to him. He sent back the signed 8879 forms. Called him yesterday to confirm that he mailed in the 4868 form with his payment as we had discussed a month ago. He said he couldn't remember whether he used form 4868 or the 1040-V form (!). Can I just efile the 4868 for him to ensure an extension is filed? What if he did already mail one in with payment? Any problems? Thanks!

If I see the withholding is less than 10%, I figure it's a pretty safe bet they will owe.

Happy Birthday!

I think I would be wanting a letter of explanation from the lawyer.

I do believe having "CPA" after your name makes people expect to pay more. so it's easier to charge more. I think EAs get the short end of the stick sometimes because no one know what an Enrolled Agent is, or what it takes to get that designation. I have a lot of forum friends who are noncredentialed or EAs. I'm a CPA. I help them with business tax returns and quickbooks accounting stuff. They help me with weird 1040 things. It all works out. EAs don't get much benefit of training in accounting, and accounting is what business returns are all about. CPAs don't get any training in how to prepare 1040 forms in school. If you're a CPA and you want to prepare tax returns, you almost always have to work like a dog and get paid peanuts for a few years in a CPA firm as an employee in order to get the experience.

I didn't fire anyone but had the safisfaction today of: Giving a client an earful for calling with questions about how to prepare her quarterly payroll forms that aren't even due until the end of the month. I don't prepare them because it costs too much and they are so easy to do. She did the same thing last year and I yapped at her last year, too. Neighbor who self prepares his tax return wants me to help him figure his way out of paying tax on a 1099C. Hubby had already given me warning. Thank goodness for caller ID. Never picked up the phone. Never will My cousin is a merry globetrotter. She hasn't filed in a few years and IMs me for help yesterday "because all of a sudden it's really bothering me". Honey, wait another week and you won't even think about it again until next April. In the meantime Google foreign income exclusion. Client makes an apt on 4/8. I tell them they will need an extension. They cry bitter tears. I look at their paper work and I see that they will owe a chunk. I tell them this. The guy looks down his nose and tells me they are "proud to pay their fair share" and why don't I just get busy on that tax return because they don't an extension. So, I do and they owe north of $10k. It pleased me to listen to them babbling with shock. I also tacked on $125 PITA fee. Some days are better than others.

Are you huggers ever afraid about getting the flu or a cold from the client? I'm not a hugger. Maybe I should try it.

Entered a 1099R that came back rejected for a "nonexistent EIN". I had entered the account number by mistake. That number started with 86 and was the right number of digits. I had a hard time finding EINs on some forms this year and it never helps that the font size is so teeny weeny.

Morning! When you say everything concerning the coffee shop is run thru the SCorp, does that mean the legal stuff like loans, leases, contracts, and payroll, etc? Because I would want to separate out the coffee shop activities from the real estate business and report the coffee shop separately on a 1065. 2014 is already late and this is a ripping mess. An SCorp can be a partner, but a partnership cannot be an SCorp shareholder.

I'm finding that out. I've come to the conclusion that since the Son did take the distribution from the Trust, the back up withholding will be on his K-1 on line 13. I'm understanding that if the Son had left the IRA funds in the trust, the trust would have to file a tax return to receive any refund of the back up withholding. I really hate trusts. They are so twisty.

Well, crap. I just found the correct search terms and the interweb says NO. The trust gets a refund of the withheld taxes. No! Wait! Now I see something different! Would anyone know off the top of your head?

Son is the sole beneficiary of his father's trust. Dad passed. Dad's IRA named the trust as the beneficiary. Son took a total distribution and 10% was withheld for Fed taxes on the 1099R. Is that entered to the Son's K-1 on Line 13 as code B "backup withholding?". Never had an IRA named as beneficiary before......