BLACK BART

The above posts are what I like about this board.  Nobody can say it doesn't help you cut taxes and look good to customers; i.e., first post starts out with possible 39 years and last post ends up at five.  As they say, it's all good! 

Had a similar case some years back and felt the same way as Beckster (all IRAs need a 1099).  Called the sending bank and asked ("Where's my 1099?").  That bankster ended up schooling this tax pro - his reply: "It's direct to another bank - we don't have to send him one." So, after advising him that he was mistaken, I looked it up and found advice as per Lion's above.  Quite embarrassing!

But those moneychangers aren't always right.  That same bank prez later told one of my clients "It's too bad you built it yourself.  Self-constructed houses don't qualify for the $8,000 new home credit." I looked it up: they WERE (and I got it for him).  Never got around to calling bank and saying touche, darnit.

Moral for clients re advice: Avoid bankers and stick to the hairdressers (their bologna is less costly). 

On 12/26/2022 at 12:13 PM, cbslee said:

I have read variations of this list online:

1.Just a friendly reminder  .  .

2.  Don't take this the wrong way  .  .  .

3.  Got it

4.  How are we doing with  .  .   .  . that I'm waiting for

5.  If that's what you want to do  .  .  .

It does make you think about how you communicate with clients, friends and family.

So my New year's Resolution is to be less negative and more positive 

Long ago, clerking for a local tractor sales repair outfit, I composed a collection letter which mentioned some of the above lines plus others I created.  Hot into writing at the time (no best-sellers emerged), I considered mine a friendly-browbeating masterpiece.  A fellow colleague from our nearby competitor later called; praising it highly and asking permission to use it. Quite pleased, I agreed.

Next month he called back: "We got a better letter than yours." (Their customers didn't pay well, but neither did they.) A rough, camo-collar guy who sold scrap iron but was also known to pack an iron, had penciled on his notebook-paper statement:  I WANT MY MONEY

Paid the same day received.

BB 

Thanks Lee, but what I was really thinking about was a little later on when I may be just doing family and friends and is there an actual specific number that you must file to stay on the rolls. 

Like, for instance (in reverse), they (I think) dropped to ten the number of 1099s you could file by paper. Similar principle even though they're not tax returns.

Thanks for the "attaboy" smile, Marg.  You're a gentlewoman and a scholar.  

That makes two I've gotten this morning (counting the senior lady at McDonald's).

Is there a minimum number of returns that one must file with IRS in order to keep his/her EA license?  0-1-10-50-...? Cutting back some.

I kept the previous six for decades (long enough, I think).  Cut down to three this year.  

I've only had one poor soul on whom they ever went back six years.  His precedent was unprecedented.  A preacher, for heaven's (and his) sake.   

15 hours ago, Lion EA said:

You looking for yourself or to send to your clients?

Myself.

On 10/28/2022 at 7:15 AM, ILLMAS said:

I know of a 2021 business already being audited.

Don't happen to know the AGI, do you? Only if you can say without compromising anybody (including yourself ).

Any suggestions for a monthly tax newsletter? I had Kiplinger but they seem to favor tax dodges for the well-heeled, where to stick their million dollar IRAs, foreign tax matters, etc. and I'm looking for something focusing on "just folks" - average jobholders + C and E people.  Funny, but I once read that IRS considers any outfit grossing under five million dollars to be a "small business" which suggests (to me) they're out of touch with actual mom & pop shops.  Or maybe I am....

I won't be buying an Escalade or Mercedes but this post brought a couple of things to mind:

(1) I think it was novelist F. Scott Fitzgerald who said "The rich are very different from you and me."  To which some wit replied "Yes, they have more money."

(2) In 1986 I commuted twice a month to Maumelle, AR; a trendy (well-as trendy as possible hereabouts), upscale Little Rock suburb to work for a well-off construction guy at his lakeside condo.  He wanted a cheap (his specialty) set of books (my specialty at the time) created and posted.  On arrival he asked to borrow my car for the day-his Jaguar and Mercedes were both in the shop. I'd just bought a brand-new mid-grade '86 Pontiac and was quite proud  of it. 

Day's end, I ask "How'd ya like it?"  He: "Just fine; you know, that would make a great work car." 

Think I've posted this before, but it's worth repeating.  I read somewhere on an IRS TIGTA (IRS's version of police Internal Affairs) report that they reprimanded a division of IRS for using as a password the word (no, not a convoluted, lengthy combo of numbers, letters, characters they ask of us) PASSWORD.  Didn't say if upper or lower case required - your choice I guess. 

One from bygone years (paper-file days) still gives me a grin when I think of it.  No hard feelings since (1) she was a very nice, pretty lady (2) it was unknowingly unintentional.

She had a big wad of LBT (little bitta this-little bitta that) papers and needed a complex 1040X.  Hubby figured a refund was due.

She: "He said we need it done right away."

Me: "Well, Mrs. X; I'm afraid this is going to take quite a good long while."

She: "Oh, that's okay!  I can come back after lunch."

_____________________________________________

Such is life! .......................................... Pop

On 7/14/2022 at 5:17 PM, NECPA in NEBRASKA said:

I don't know what more that I can do to help this client...think that they should have more deductions and make more money like other people tell them...I can't pull expenses...out of the air...already made 3 times as much in...2022...ideas?

On 7/14/2022 at 11:06 PM, NECPA in NEBRASKA said:

...other realtors...tell her they are making a killing...said...she is tired of paying so much in taxes.

 

Not much you can do I think and they'll probably leave eventually. They like you for your past good, solid work when they were "just folks".  Your CPA title helps, but they want to believe their buddies who say go with the big firms. It's a pattern; not confined to realtors/landlords. Once many SE types hit six-digits they develop (as John said) a "sense of entitlement"- a sort of "look at me" smugness; i.e. "My house and cars are paid off, I own rental property, have stocks, money in the bank, plus a fantastic job and all benefits." Or, as one once told me: "I've pretty much got everything else nailed down and I just don't see why we can't crack this nut." Oddly, he seemed to believe that his success could kill off taxes (the nut). 

Just curious, but how'd it come out?

4 hours ago, Yardley CPA said:

MFJ client.  Wife is a sole proprietor, hair dresser.  Please confirm my understanding that tips she receives are included as part of her gross income?  

Gosh, Yardley; that's a tough one.  Finally though, a question that doesn't require exhaustive research by the estate/trust wizards hereabouts.  I believe IRS has already ruled for the prosecution ("yea").

However, many hair-doers as well as other independent contractors feel it's a subjective question open to debate .  Lots tend to be "agin" while I'm obliged to argue "fer" and the damages are occasionally brutal (for both).   

"Such is life"; as the old man used to say.

On 6/18/2022 at 12:36 PM, schirallicpa said:

I too have had ATX for 20 some years.  I actually tried out Drake and didn't like it.  ATX is a good software for a small business.  I like that I input from a screen that looks like the form.  But I started out old school filing in the blanks on a tax return by pencil.  So I feel comfortable using the forms and not relying on input prompts.   I haven't had any complaints (since that little issue in 2012.....)  (2012?)  (The older users will know.....)

 

On 6/20/2022 at 2:56 PM, RitaB said:

Same here.  

Same here, here.

Please, please!  It's been a bad year.  Must we face this now? Is ATX requiring W-11 for '22?

Maybe it will be less daunting in; say, December.  I'll be free to do pre-season tax prep chores in January since income tax doesn't start 'til the 30th and I assume there's no point in filing my paper W-2s.

It brings to mind a row of numerical fence posts stretching away in the distance: W-12, W-15, W-20, etc. until our great-grandchildren are eventually hacking away at W-65 and on.........

Oh well; a venting helps anyway.

On 4/29/2022 at 5:18 PM, Catherine said:

Happy Birthday, Judy!  I have about a year on you (ahead, not behind). Last summer when I was teaching I so seriously overdid it all that it took a full month to feel even vaguely human again.  This tax season has been relatively mild in comparison (there was one really nasty week, and a few other multiple-day events). No alarm clock. Not working weekends, or evenings. I "wasted" an entire day reading a novel I'd bought in like February and had been looking forward to; that was lovely.  Working in my garden.  Visiting granddaughter (and her mama and dada) - she started walking at 10 months! Also talking a bit (mamamamama, dadadadada, aaaDUH (all done), awwwtuh (water) and a few others). This weekend I'll be starting some seeds for veggie plants.  Sewing.  Finalized the book for the Bible study class I run weekly.  I also started the intermittent fasting last fall with great trepidation but frankly I had the best/healthiest winter in memory and feel good overall, too.  Rifle practice with the laser trainer setup in the basement; our annual set of 3 matches starts next Saturday (first time since 2019), but it's been way too cold and windy to practice outside! 

Having a hard time getting motivated to deal with extensions. Remembered at 4:15pm today that PR tax payments were due; got 'em scheduled on time! Plus 941 and other filings. Two amended returns done (both had late-received, totally unexpected, K-1s from estates). Next week I have my own bookkeeping to catch up on.  Summer vacation in August to look forward to, and another week of teaching in July (told them months ago I won't be doing nearly so much this year) to prepare.

Was feeling super burned out last year so I've been scaling back as best I can this year. 

On 4/29/2022 at 5:18 PM, Catherine said:

Happy Birthday, Judy!  I have about a year on you (ahead, not behind). Last summer when I was teaching I so seriously overdid it all that it took a full month to feel even vaguely human again.  This tax season has been relatively mild in comparison (there was one really nasty week, and a few other multiple-day events). No alarm clock. Not working weekends, or evenings. I "wasted" an entire day reading a novel I'd bought in like February and had been looking forward to; that was lovely.  Working in my garden.  Visiting granddaughter (and her mama and dada) - she started walking at 10 months! Also talking a bit (mamamamama, dadadadada, aaaDUH (all done), awwwtuh (water) and a few others). This weekend I'll be starting some seeds for veggie plants.  Sewing.  Finalized the book for the Bible study class I run weekly.  I also started the intermittent fasting last fall with great trepidation but frankly I had the best/healthiest winter in memory and feel good overall, too.  Rifle practice with the laser trainer setup in the basement; our annual set of 3 matches starts next Saturday (first time since 2019), but it's been way too cold and windy to practice outside! 

Having a hard time getting motivated to deal with extensions. Remembered at 4:15pm today that PR tax payments were due; got 'em scheduled on time! Plus 941 and other filings. Two amended returns done (both had late-received, totally unexpected, K-1s from estates). Next week I have my own bookkeeping to catch up on.  Summer vacation in August to look forward to, and another week of teaching in July (told them months ago I won't be doing nearly so much this year) to prepare.

Was feeling super burned out last year so I've been scaling back as best I can this year. 

With that resume you're running a close race with Margaret.

14 hours ago, joanmcq said:

I remembered this morning that PR was due! Just doing my husband, thank dog.

I turn 62 later in the summer, and having those same thoughts. And being a couch potato thinking about exercising again….

With that resume you're running a close race with Me.

18 hours ago, Margaret CPA in OH said:

...You will feel better with some R&R, though, and moving your body.  It makes a difference...

My postponed for 2 1/2 years trip to Raja Ampat diving was just recently cancelled...

I swear, Margaret; you are just the most enthusiastic and active gal I've ever heard of.  Kudos for your gusto.  

Looks like I won't make it to Bonaire but the doc told me recently to "get some exercise"; so I'm taking your R&R advice.  Think I'll wander over to our high school track after hours and make a couple of rounds. And; since he also warned me (again) to "NEVER eat another hot dog", I think I'll stop by Ralph's Kustom Kreme on the way home (Jog? Probably not) and get a foot-long (with extra mustard). 

Good luck with Raja.

Regards, BB 

Thanks Judy, 

You're a gentle(woman) and a scholar (and)such a huge scholastic source.

Regards, BB

sorry, can't get this dang thing to work.

Does IRS' First-time Penalty Abatement cover underpayment of estimated tax penalty?  Seems to me like failure to pay would be the only possibility among the three f's: failure to file-pay-deposit.

Since my guy actually didn't even make any estimates at all and owes about 15K, they probably wouldn't view him sympathetically, but, on the other hand, he's got the required clean tax track record.  Is it agent's discretion or what?

P.S. Seen any good movies lately? I swear I'm gonna cancel Direct if they switch one more channel to PPV.

Just a wild guess, but I'm thinking maybe....umm...."Do not pass go; do not collect $200!"

On 1/13/2022 at 8:47 PM, Terry D said:

...passed...EA...the three parts are not a cake walk but are not as difficult as when there were four parts...when it was a paper-pencil test...join the NAEA?...good discount...Opinions please. 

Congratulations and thanks for prompting a trip down memory lane for me. 

To answer your question, I never did join.  Lots of pros and cons, but I just didn't like their approach.  Sample magazine had good info and I assumed they were lobbying (even if we can't get a catchier name change), but like Tom said, the new letterhead printer asked me "What's an EA?"  Nothing deal-breaking but then EA state society wrote me almost demanding I join as a moral imperative while dissing another accounting group (required 40 hours CPE) I was in at the time. Also, I'd have to pay state plus  national dues. So, no go.

The tests? Ah, I got some good laughs, and scares, thinking of those two days (used Gleim books too-very good).  It was 2005. IRS wanted licenses for everybody except EAs, CPAs, attorneys. Good thing I got a no-computer/calculator education - those testers took away everything, gave us a pencil and scratch paper - that was it. If you didn't know your multiplication tables, you were dead in the water.  

I had studied two weeks for the test - was a little set back when 30 minutes pre-test others said "six months" / "a year" / "taking it 3rd time".  Upshot, I flunked the first year (figured I knew taxes, but who knew a sister corporation didn't require a real sister?).

Year two: 2006-last four-part.  Passed (scores not disclosed-thankfully).  Secret of success: six months study, prayer and (must be) divine intervention.  Just for extra pull, gave ten bucks to a panhandler on the way out.

Two ironic things stand out: (1) Before taking test, a lawyer told me "No point in rushing. It takes government a while to move."  How true - it's 2022 and barbers can still do tax returns.   (2) Before we left, the person testing us held up one of those green 1040EZ pamphlets (remember them?) and said "Those of you who pass should be able to fill out this form."  

On 1/4/2022 at 11:05 AM, cbslee said:

Now I know where to refer all those client questions to :

https://www.irs.gov/help/ita

 

Thanks for the tip, Lee. 

On 1/4/2022 at 11:57 PM, Christian said:

What was it Jackie Gleason used to say "Oh how sweeeeet it is". I ,of course, realize many of you do not know who he was. 

Actually, I think many here do. 

In a nod to marital bliss, I liked "How'd ya like a trip to the moon, Alice?" And another gem was sewer worker Art Carney's hope that his son would someday "wade in my footsteps". Come to think of it, our first house furniture and appliances somewhat resembled Ralph Kramden's apartment.  But, that aside, ... mmm ... wish somebody could bring back the old days.