BLACK BART

What err.

Thanks, Abby N -- That answers my question even if it doesn't cure my (his) problem. Two carrybacks and then forward -- what a mess. He's really a nice guy but he's so broke he can't pay attention; much less the fees for two pointless carrybacks and several c-forwards; to say nothing of the tax he'll owe. This is going to be a test of spiritual character (concern for my fellow man) since there'll be next to zero chance of any fee collections (oh well; my office needs painting). Seems like 1099 construction workers are always falling into the trap of nothing withheld, broke at year end, and SE piling up for 3-5 years until they're in for 20K with all the crushing penalties plus compound interest piling up 'til they can never get out; just trudging on an installment treadmill far into the future. But, such is life; the old man used to say. By the way, that is the confoundedest avatar I've ever seen. Where'd you get it? Is that you or a mad scientist (accountant) having a very good day? ____________________________ "Now, here you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that." -- LEWIS CARROLL -- ALICE THROUGH THE LOOKING GLASS.

My client had a loss in 2014 and hasn't filed that return or 2015 either. I'm going to try and get him to catch up, but he usually won't until they run him to ground and make him ante up. I know the option to get REFUNDS expires after three years but he always owes anyway. So my question is, if he waits until AFTER 4-15-18 to file (very likely), can I still file the '14 loss return, elect to carry if forward, and have that loss REDUCE TAXES in the succeeding years (15-16-17-etc.)? Or does using the loss expire after three years just like the refund option? I believe I can still use it, but it's been so long since I did such as this that I don't remember for sure. Any opinions? Thanx. Luddite BB here (I PROMISE I'm gonna take a look at that Alma's 10-Key thang )

Thanks-I'll give them a shot. If ribbons are discontinued I'll junk the Canons, take the guys' hints, and start shopping for a Foxfire Solar Steamer; Tick-Tack-Dough compliant with Hush-Up capability and dual exhaust.

Solved a mystery this weekend that's been buggin' me for about a year. Couldn't find any good ribbons for my calculators; everything I tried was maddeningly light, illegible, gray, or faint to the point of non-existence (like some of the unreadable gas tickets customers bring in). I ordered two new Canons from Quill and when the starter ribbons played out I bought new ones from Office Max/Depot -- they were gray starting out and faded quickly. Bought a second new package; same story--began to wonder if Canons were no longer a quality brand and considered switching machines. This weekend I went by a small out-of-town office supplies store (mom and pop shop) and explained my problem. The nice lady laughed and said "No, you're not crazy. The story is that Max used to buy from Burroughs Corp, but they dropped them and went to a cheaper, low-ink overseas supplier." She had an alternate ribbon (no box/just in a cellophane package) which she said was good, but not jet black like we used to get. I've tried it and yes, it IS good, if not real dark. Think she said it was made by Data Products or Data Supply (something like that); she had four left and I'm going back this weekend and get the rest. Just in case, anybody know a good quality mail-order supplier? Thanx. BB

Pretty good one, FD (I assume you went for the 16 oz .). While I try to remain optimistic about these things, the more glaring transgressions do tend to stand out. I've got one too. Stopped at Mt. View Pizza Hut; two large pepperonis on sale for $12. Paid with a twenty; clerk punched it in register, I got two dollars back. BB: I think you've made a mistake. CLERK: What? BB: The sale is twelve dollars, I gave you a twenty, you gave me two dollars change. CLERK: Yes? BB: Well, twelve from twenty is eight dollars. CLERK: Dumbfounded stare. BB: Same. CLERK: Do you want me to run it through the register again? BB: Please do (second time I lucked out).

Oh, I wouldn't take it too hard, my friend. These things are done mostly for entertainment and he most likely quizzed a few dozen beachcombers (some knowledgeable, I assume) before distilling these results. Besides, they were largely clean-cut kids (never mind the tattoo) and that's encouraging nowadays. The cute girl was funny too ("Go America!").

http://video.foxnews.com/v/4937667939001/can-beach-bums-pass-the-watters-world-quiz-on-us-wars/?intcmp=hphz05#sp=show-clips The War of 1812 question was tough.

Oh! Sorry. Got so wrapped up in my tale of woe that I forgot it's your thread and to answer your questions. 1) Yes. I'm with you (paper IS underrated). 2) I usually use the address at the top of the letter. Offhand I don't remember if the stub address was the same or not, but I've used both at different times and somebody at IRS apparently always forwards the stuff to the right department (it's gotta be a common thing) no matter which you use. Did you mail it or what's happened so far?

Well...as Pop used to quote: "Everyone to their own taste said the old man when he kissed the cow." Personally, I'm like you; I much prefer the written word (there's something comforting about the wordsmithing craft). And others' advice about keeping it as short as possible is right on the mark. But, having said that, I had the following problem a couple of years ago: When filing a first quarter 2014 paper 941, I accidentally used a 2013 blank form although wages, withholding, calculations, etc. for both years were correct as filed. Client got IRS non-filing notice for 3-31-14. I check it out - send in brief explanation. IRS writes back (12-31) saying they're working on it. Nothing happens. I write again (4-15). They write back (7-15) saying they have graciously fixed it even though I did not properly use a 941X. I assume all's well until SSA writes (11-7) saying 2013 941s total $4K more (exact amount of 3-31-14 941) than the W3 I filed. I write IRS a looonnngg letter (11-24) explaining in detail what happened. They send back a $600 bill for non-payment of 3-31-13 taxes plus a year's late charges and another non-fling notice for 3-31-14. I give up, call IRS Taxpayer Advocate, am astoundingly lucky in that call goes through within 3 minutes, the sharp female agent has me fax a POA, I explain the circumstances, she pulls it up onscreen, says (of IRS' actions) "This is ABSURD!" I hear keys clicking and she fixes it on the spot. Don't know what I'd have done otherwise. And...that's how a nightmare can evolve from a little bit of nothin' and how a telephone rescued me. Paper's always worked best (for me) so I'll probably stay with it, but it doesn't seem like it used to be this hard (or maybe the clerks are just gettin' worse). Best regards and good luck. BB

While jklcpa's 1099 situation is certainly not funny (I don't know WHAT I'd do with those two 1099s), it DID bring to mind something humorous (now-not then) which happened to me many years ago. A new client; a young guy (mechanic) wanted to work for himself - had no business experience but he dreamed of release from the factory time clock (can't blame him - I've punched one myself), so he dove in head-first - borrowed $75K (much more than he could ever hope to recoup), built a new garage, had his wife quit her sewing job, made her secretary, receptionist, and (last-and least) bookkeeper. The first year he hired four guys and after a stunning $15,000 loss decided to reduce expenses next year by having his wife prepare the W-2s herself (instead of paying me ten bucks per form). 941s and sales tax get me $45 monthly plus $225 for the 1040, so I figure what the hey -- I furnish her the blank forms. She asks "How many copies do the employees get?" "Three," I say and explain the red A's for IRS, copy 1 is for AR, D is hers, and the B/C/2 copies are for the employee. A blank stare and then she says "But, the employees get three copies?" Thought nothing else about it 'til the middle of February when she brings her hand-written "D" copies for me to look over. Now, I'M stunned. There are three Ds for each employee. I ask "You didn't happen to make three RED copies for each person, did you?" She says, "Oh yes; you told to make three copies for everybody." I ask if she still HAS those red forms. She replies "Oh no; I mailed those a week ago. We don't want to pay any late fees after doing these myself." Twelve W-2s for four guys . I surely MUST have fixed it, but can't for the life of me remember how. Too painful to recall, I suppose.

Sorry for the perceived slight; I did not mean to imply that you (I note you're a Moderator well-versed in taxes) need any 1099 basic training from me. It's just that, for me at least, this situation is an infrequent occurrence (years in between) and when it DOES come up, I generally have to go look that booklet up because I always recall there are "sometimes one form required & sometimes two." Besides it's one of the few IRS instruction booklets that I find plain and clear with a quick desired result. I like to read it and thought others (if they had not already done so) might too.

I disagree. On page nine, Section H, of the booklet it states "If you filed a return with the IRS and later discover you made an error on it, you must: . Correct it as soon as possible and file Copy A and Form 1096 and . Furnish statements to recipients showing the correction... CORRECTED checkbox. Enter an "X" in the corrected checkbox only when correcting a form previously filed with the IRS or furnished to the recipient. Certain errors require two returns to make the correction. See Filing corrected returns on paper forms below to determine when to mark the "CORRECTED" checkbox..." Yes, the link does work after all (I couldn't get it to do so when typing the post).

I've had a few of those over the years too, but now I have a few people (mostly non-clients) coming by to ask for a blank 1099 or W-2 (I order a few from IRS to give away). Asked if they want a 1096 transmittal to go with it they almost invariably say "No thanks, I don't need that." I'm assuming they either don't know/care what should be done or that they just want to hand somebody an official piece of paper to satisfy them. In any case I'd bet that IRS/SSA never sees the red sheet.

Thank you. I think most of the above are pretty good suggestions to work around the problem. The wild card, as you say, in these cases is the clerk of whom you have no idea what they actually sent. I once had one that wrote "AMENDED" at the top of a 1099-MISC (without checking the "CORRECTED" box) and the client was never billed. However, that was many years ago and I'm guessing a good agent realized what she meant and therefore cancelled the first submission -- can't speak for the CSR's nowadays. The agonizing thing about these, of course, is that you generally have to wait until summer of the next year before a notice is sent. The other case was a HUD agency who issued an incorrect 1099 money amount. The clerk said she didn't know how to fix it; I offered to either show her how or to do it for her but she refused saying "It has to be done or authorized by a HUD official." And that was that - they did nothing. But it was also a non-event since the landlord had enough rent income listed to cover the HUD payments and more; back then they didn't send a notice if your TOTAL rent income was sufficient. She never got a CP letter. The upshot of it was that in the process I discovered this little booklet that neatly covers the correction methods. The title is "General Instructions for Certain Information Returns" (type that into Google and an IRS PFD will come up -- I tried to make a link of it below, but I don't know how and can't get it to work). Anyway, Google those words and take a look at page eleven: There are two types of error corrections. Method #1 is for money amounts and only requires ONE form. Type in the new money and check the "CORRECTED" box; this cancels the old 1099 money and substitutes the new money amount. Method #2 is for names and ID/SS numbers and requires TWO forms. On the first 1099 you type all the text information just as was originally and mistakenly done, but you enter a ZERO on the money amounts. Then check the "CORRECTED" box. This will cause the old form to no longer have any effect. Next, you simply type up a new 1099 just as if you were doing it correctly for the first time (DO NOT check the "CORRECTED" box). (Theoretically this all works out ). https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

This is a few weeks late because I just noticed this post, but I was wondering what you did about this. I've had a couple of similar cases over the years and was curious. Thanks.

Gosh! What a criminal mastermind. Wonder how we'd defend ourselves if we were exposed as NOT being pillars of the community? Maybe if we began feverishly working at a soup kitchen, strictly attending all Little League games, send the mayor a birthday card, adopt an intersection, or right away start flogging the church door at least three times a week. Darn; he'd have ME anyway though - I'm NOT a CPA. Now what?

About $125 to $135. But, this is Arkansas ("pore boy" territory), so you have to allow for that. Things are usually cheaper down here.

I don't have many of those guys anymore, but a funny thing about them was that when they showed up on April 15th most wanted it done IMMEDIATELY. I'd say I couldn't do it that day but could get an extension for them. Most would reply "Oh, I don't like to get extensions - I want to file ON TIME."

I thought I'd seen some absurd attempts to file at the last minute, but a postal clerk one-upped me yesterday. Before electronic filing they used to stay open 'til midnight, but now they close the window at 4:30. He told me that on April 18th at five they were in the back getting ready to leave when someone started beating on the door inside the lobby. He opened it and a man said "Do you have any blank tax forms?"

Yeah, there are lots of people like that. One of my clients is an auto body repairman whose car is five colors. Another's a carpenter living in a mobile home. A third one is me. I didn't forget the quarterly; just sent the dough with the extension (couldn't possibly do my OWN return before 10-15). A fellow tax preparer and QuickBooks fan (they're everywhere) once asked me what accounting system I used for my business. Sure hated to tell him that it consisted of a spiral-notebook, a blue BIC, a red Flair, and a dozen or so calculator tapes.

Had a lady call and say she hadn't received her refund check - it had been a month since she filed. The problem resolved itself when the check showed up recently (she called and told me so-thank Heavens). But I getting all prepped-up to do battle with IRS, file an affidavit of lost check, hang on the phone for hours, and wrestle with IRS proving it wasn't HER who cashed it; if indeed someone else did (wasn't just lost in the mail). The post office said THEY could not track it. Anyway the taxpayer's naivete and lack of grasp of the enormity of the problem/time involved (six weeks minimum on a form 3911 response alone) blew me away. She arrived at 10 A.M. the first day and I launched an explanation of how IRS (and we) were swamped at the moment, that such things are difficult to track down, that government gives it low-priority, it's a tedious and cumbersome process, and so on and so forth - blah, blah, blah. I wound it up saying "Ma'am, this is going to take a good WHILE!" She replied, "Oh; you mean I should come back after lunch?" Chuckled the rest of the day.

I've had a couple this week. They avoid CPAs (too pricey) and shop the small independents (like me) for the cheapest rate. It's almost a pattern; they call for an "appointment" (I take everybody as a walk-in) and are disappointed when I say so (their stuff is very "important"). But they ask anyway how much for, like "a small farm rent and one or two W-2s" (to them, everything, including 1099s is a "W-2"). So I, always looking to drag in new blood (it's getting scarce), will quote maybe $225 or so to get 'em in the office (while I detest "up-selling", I'm willing to compromise to a certain extent for the greater gain). Later in the afternoon, a spiffy crew-cab pulls up in front of the office and I can see him/her sifting through their papers. The longer it takes them to exit the car, the problems grow exponentially. Then they deposit either a cardboard box or accordion file on my desk. This last guy with the "small farm and a W-2" DID have a small farm rental, but he also had 14 separate 1099s, one a non-farm box 7 requiring at least a C-EZ, and including a Morgan-Stanley 1099-B listing 19 individual stock sales (no, all basis was NOT reported to IRS, and an 8949 WOULD be required rather than lumping everything as totals on a long and short "D"). Mercifully, this ended quickly when, still-undershooting, I told him it was at least $500 and he quickly stuffed everything back in the box saying "Oh, I can't afford anything like that." This, as he tucks away his 1099-INT of $3,800 or so and a 5498 listing $160K. When he leaves, I ask myself why did I bother since you can almost smell 'em when they call.

As I understand it, the married filing separate taxpayer filing first sets the method for the second filer, whether it be standard or itemized. I've got a client who claims he is separated from and did not live with the wife at any time during the year. He has lots of deductions and wants to itemize, but I suspect maybe they DID live together and she's already filed standard as HOH and gotten EIC. I know the taxing of some usually not-taxed SOCIAL SECURITY can be avoided if they didn't live together for the last six months, but how about ITEMIZED DEDUCTIONS? Assuming that they actually DID NOT live together at all during the year, would that have any bearing on him being able to itemize or not even if she filed standard. I think it wouldn't be relevant, but just thought I'd take the pulse of the board (probably just grasping at straws). Thanks for any advice.

While I do very few wage-only returns nowadays and am no longer competing with the big-box guys, it's interesting to see they will do to outbid the others. When Block advertised $9.95 returns last year, I thought nobody could get much lower. Then this year's "completely free" TurboTax ad was stunning -- zero for federal AND state. How could anybody compete with that? Now I know. Today's newspaper had a coupon stuck on the front page: "Get $50 instantly when we file your taxes" - Jackson Hewitt. Although the fine print says "Minimum tax prep fee of $150", I think they're saying they'll give you $50 cash right now if you will let them do your taxes. Now, that's cheap - tax preparer pays the customer.