BHoffman

Hahaha!!   "Swirling cape".  Hahaha!!

I put it on the parents' bill until they tell me not to.  I also prepare a few pro bono returns for kids in school with their part time jobs.  Figure they'll be making money soon enough and I'll be needing younger clients as the old ones....no longer need to file.

It's like a rodent chewed open their SSA forms....

That's awful!

Note to self- you need to step back and relax.  It's all on extension.  Breathe.  

Take a little break.  Remember that candy ain't gonna crush itself.

I've been suffering with dread over changing a client from cash to accrual.  It's a commercial contractor SCorp.  When the bleep is this client required to change accounting methods because his gross revenues are over $10m???

2013 - $5,000,000 gross revenue

2014 - $10,000,000 gross revenue

2015 - $12,000,000 gross revenue

2016 - $14,000,000 gross revenue

This client doesn't have to change accounting methods until they file 2017, and they will look back on 2016 , 2015, and 2014?  Right?

My own extensions are filed with payment, so that's about all I care about after today.  I have one client who will owe around $40k and has given me nothing except a W2.  I suppose the midnight oil and last minute freak out will happen on Monday.  They are also a big corporate client so I have to do this.  

I'm so not done. This has never happened and I've always been able to finish on time. There are clients who will owe, but I still have to review, print, assemble, and then the thankless task of setting an appt for them to pick up the returns.  What day?  What time?  Forgot about that Dr appointment?  OK....ugh....I'm so sore and tired.....

Something new today.  Extremely OCD lady wanted me to explain how every number on every line was calculated on form 6251 AMT.   I let her grind on me for about 10 minutes and then told her that I could prove every number on the form, but would need to put the return on extension.  She and hubby are due to receive a five figure refund, so she finally dropped it.  

3 hours ago, ILLMAS said:

Client(s) promises a couple of days before April 15:

"I promise next year, I will bring in the information a little earlier"  I just don't have the guts to say what a F'n lie

I have a client like that. My reply, "Oh, you tease me."

Given the amounts, I'd venture to guess that she is a gambling addict.  She's lost over 25% of her gross income, according to these win/loss statements.  I feel sorry for her.

I just fired her via email.  I referred her to a very good tax rep guy who likes to gamble himself, and apologized profusely for my incompetence in not being able to adequately represent her with so much at stake...blah, blah, blah.

She came in late, she lied about the gambling and knew she should have told me, and she took the advice of "the casino people" without mentioning a thing to me.  What else is she hiding?  She's a disaster waiting to happen and I kissed her goodbye, nicely.   But, I am pi$$ed.

I could handle a smaller at-risk amount, but when the wagers and wins are over a half a million dollars, that's a bit much.  

Cripes, she only makes salary of around $80k per year.

I just did.  Who thinks I should refer her to a nice tax attorney and fire her?

Is this something new?  Years ago, I had a client with the same problem - CP2000 for unreported W2G forms.  I sent the win/loss statement and that was the end of it. I think the unreported amount was around $15,000.  

Client did not give me all of her W2G forms from 2015 and received a CP2000 letter.  

I asked her for the Win/Loss statement from the casino.  

This statement shows total wagers of $550,000 and total wins of $525,000!!!  

It is broken down by month.  I doubt she kept a session diary but will ask her.  She is not responding to my calls and emails today.  Probably busy at the casino....She is required to respond by April 26th.  She is out of town from 04/15 - 04/22.  Probably going to Las Vegas....

How in the world do I prepare a response?  I've prepared a "Do Not Process" 2015 1040X with the winnings $525k on Line 21 and the same amount as losses on Sch A.  She owes about $5,400 that will trigger the dreaded understatement penalty.  I am asking for the first time abatement of penalties.

I'm stunned at the amounts and afraid the IRS isn't going to simply take the response and her $5,400 payment and call it a day.

Any advice would sure be appreciated.

1 hour ago, schirallicpa said:

cool....same route.  but we're westward.  Chautuaqua is near Lake Erie.

 

The See-Zuhr House is in beautiful downtown Bemus Point. If you go there, check out the ferry and the old Hotel Lenhart. Bemus is my favorite summer destination and where I lived as a child.  It was a great place to grow up

Strike 1 - Late

Strike 2 - Liar

Strike 3 - Loser

Where in Western NY?  I grew up around Chautauqua Lake.  Good fish fry there at a place called the See-Zuhr House

Hubby did the classic "tuck and roll" with the covers at 2AM this morning and woke me up.  I've been up since then and this is turning into a very, very long day.  He is having a nice nap.  I'll get him later.

I'm doing the best I can to finish returns with balances due but the others are going on extension if I run out of time by next Friday.  And, I haven't even finished my own bookkeeping yet

The LLC is disregarded, so wouldn't your client just report an installment sale?  He ought to change the LLC papers with whatever his State dept. who handles that stuff, but I wouldn't complicate it with a 1065.

I threw a blank extension form at my crappy neighbor who literally pounded on my door yesterday.  The neighbor who lets her two pit bulls run around off leash.  Good riddance. 

Glad you like it.  Your client might prefer that arrangement to risking fraud charges brought by the buyer for accepting funds without actually having the right to sell the property.  Not to give legal advice, but if it was me, I would want a contract that spells out the contingency to the buyer so he informed and that funds plus interest will be refundable if the seller is unable to obtain proper title.  This is a very stinky arrangement. 

What happens to the extra $6,000 when he can't find the chick and has to refund the money?  He can't sell what he doesn't own.  I would advise the client to put the funds in some sort of escrow account where he has no constructive receipt and leave it there until this shakes out.  And in the future, the buyer should be paying the $6,000 to the account custodian and not directly to the client.

The thing that bothers me is the big owers are usually the ones who put the dreaded tax appointment off until the last minute, and then the suspense starts to kill them, and then they lean all over us to find out the bad news, and then they cry.  I try to just do my job and not get wrapped up in their drama, while I fake sympathy for their terrible plight.