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mcbreck

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Everything posted by mcbreck

  1. mcbreck

    IRS Letters

    My state does this also. Only solution I've come up with is to call the tax authority. The problem is both are past the Check Box authorization so you have to file authorization. No clue why anyone in management thought it was a reasonable process.
  2. Once my mind turns off - I'm not coming back.
  3. 2022 is just last years tax return. Seems very reasonable to still be processing returns since W2s are often paper filed.
  4. Personally, I'd report it on Schedule D with a cost of $75k. If it's not a viable sale that they received an asset in return, they didn't have a gain and you can't report a loss on the sale of a personal asset. (assuming it's not a business)
  5. I'm at the age where every get together with friends includes a discussion of how long until we retire..... Oddly the closer I get the more stressed I am about it because it feels like this huge irreversible life decision. I've been asking people what they do all day in retirement just to get an idea of what's to come.
  6. Agreed. Between AI, form readers like Gruntworx and offshoring, watch out. Imagine for a second, Quickbooks has your online software - what if they just offer to produce the tax return for you from the file? People use Gruntworx, that's going to be quaint 10 years out. Things like Turbo Tax - you can download or upload into it your 1099s, W2s and even K-1s. What percentage of people is that good enough for a virtual automatic tax return prep? If you uploaded your Profit Loss / Balance Sheet / Cash Flow statements - a Schedule C is done in a few years.
  7. I like when it's a 45 year old, they withhold 5% and you explain the penalty is 10% before you even get to the tax. Every year the same client thinks she can deduct all the clothes she buys for work entertainment events. I explain she can't deduct dresses but every year she sends me all her receipts. Seeing the prices of those outfits, I'm glad my wife is exceptionally cheap.
  8. I'd love to hear their arguments / thought process. Have a client who inherited about $5m from her brother and had NO CLUE it was coming (he was much younger, they didn't really talk, died unexpectedly and had no one else in his life). Every time I talk with her she's royally ticked off that she owes taxes on the income. Um, you retired expecting to live on $40k, now live on $200k per year and you are upset?
  9. While the PIN isn't overly common, 90% of people who got the protection pin lose the letter from the IRS and we have to paper file.
  10. mcbreck

    Tools

    Saw an Instagram video where they went through the garage of an auto repair shop and asked each mechanic their SnapOn Tools current debt balance. If you want to see a REALLY impressive tool collection, visit an old farm equipment repair guy. My grandfather had a Massey dealership and worked on everything except Deere (which his brother in law owned).
  11. This right here. Some new clients come in and are so used to spending hours filling out and reviewing their "organizer" that it's sad. I have a bunch of new clients from a CPA who told everyone he might be retiring and then didn't - they keep bringing in these 16 page organizers that they hold in their hands as if they are the holy grail I need to fill out their return.
  12. The beneficiary (unless spouse) is required to withdraw all the funds within 10 years and you should take yearly distributions. Doesn't matter if the original owner was taking distributions or not. Even before this new set of rules, inherited IRAs were supposed to take immediate RMDs based upon their own life. There are exceptions to the 10 year rule - spouse, disabled child, child of the deceased who is a minor and if the person inheriting the IRA is <10 years younger than the original owner. As your brother, you MUST begin taking RMDs now. Whether it is your life expectancy or 10 years I do not know. You'd be called an "eligible designated beneficiary." I think it's probably your life expectancy if you wish it to be but check with the custodian.
  13. Thanks. I'll check that.
  14. Mine doesn't show that. I'd need the detail anyway as I show a bill price and then give a discount. Thanks.
  15. Is there a way to see what I charged last year without going into last year's software? If not, I'll add it to my preparer notes.
  16. My wife works for the med school / hospital of a major University and the tech group sends out phishing emails to all employees as a way to test if they are opening them and clicking the link. You can get a reward if you forward the email to tech to notify receiving it. All managers get notified if an employee gets caught. Compared to the phishing emails I get, they are sometimes VERY elaborate. Like NE, the email address is usually the easy sign, supposedly they've fixed that problem.
  17. How much are they paying? I checked into it last year for my sister-in-law and Intuit paid $30 per hour and TaxAct paid $35 per hour plus a bonus that could easily get you up to $45 per hour. Not a bad supplement wage if you starting a practice. My sister-in-law is working on her EA to snag that in retirement. Her attitude is that $10k makes a massive difference.
  18. When the broker set up an IRA distribution request form there would be a checkbox for the 72t distribution. Then the broker enters that when they make the distribution request and that's how the code is entered properly. The custodian has the ability to fix it, it just may take 6 months. Our firm runs a new set of corrected 1099-r forms in July I think. We can also fix a 1099 and change cost basis but it won't run until July. If the client follows through for all the years, the IRS will be fine with the current method. I don't know all the facts for why the firm is refusing to correct. For example maybe they didn't meet the distribution dollar amount requirement when they took the distribution or maybe they skipped a year in the 5. For example maybe this is year 5, they skipped year 3 and now the client wants a corrected 1099 and that's why the broker refuses. For example, I had a client several years ago who wanted to retroactively enter into a 72t agreement and his distribution amount wasn't based upon life expectancy. We refused to correct the 1099r.
  19. No. The laptop is encrypted so data on it would be worthless to whoever stole it. (unless they figured out my password) Any desktop could be stolen out of an office just as easily. If I'm gone for a few days, I'll lock my laptop in my desk.
  20. I've been using laptops for 20 years. In the office my laptop is set up as if I had a desktop computer with 2 external monitors, wireless keyboard and mouse. When I take the laptop with me I can run my office completely and client's have no idea. This past summer we took a vacation to Normandy France and Paris - took my laptop and could answer client questions each day. After dinner I'd get online for 20-30 minutes and get everything caught up so I didn't have a pile on my desk.
  21. I've seen multiple threads on here about declining customer service at the tax software firms. It's routine for Drake that people are concerned about their future. Imagine if you called customer service with a problem and the rep was all of a sudden in India. Think that might be rather disconcerting? Imagine the gall at the idea of them charging you a premium because they fired all their US employees and outsourced to India. That's basically what you are doing when you hire one of these firms. I've seen threads on other boards where people have outsourced their data entry, they are outsourcing their problem solving and they refuse any client meetings during tax season and want everything handled remotely. I'm not sure what service they are providing clients but I'm guessing clients will soon be demanding a significant discount for such non-personalized service. People compared this to an extended warranty on a vehicle. This isn't that. This is the Toyota dealer closing their repair shop and directing you to take your car to Joey B's Auto Shop for your warranty work and expecting you to pay a privilege for the service. If Toyota did that, I wouldn't buy another Toyota.
  22. I use them. It's very easy and very affordable.
  23. Can you pull the transcript? I get hand written 1099-nec's all the time from clients. Never had a hand written K-1 but it isn't prohibited. My guess is she produced the tax return themselves?
  24. Received! Weird when a company calls before 8am.
  25. Thanks for the update. I buy from a reseller and they remotely install it on my laptop. Guessing I'll get it later this week but never really know when they will call.
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