Richcpaman

New Client, the new spouse of an existing client.

Sends me a copy of his 2015 tax return.  AGI $168k.

Refund of $3,300.  Looks good right?  Only one W-2, Sch A, 2106 and 6251.

The PDF was 140 Pages long....  140!

Sheesh.

However. 

He coded his $5,521 401(k) contribution as Code A instead of Code D.   Turbo Tax gladly picked it up as Uncollected SS and Medicare tax and had him pay it in the Uncle Sam.

In 140 pages of information, there was NOT ONE SINGLE THING ABOUT THIS entry.  I had to get his W2 to confirm it.

I have a client for life now.

Rich 

B:

What ARE you charging this guy?

From what you posted, it seems he is full of it, and expects you to clean it up.

Rich

10 hours ago, BHoffman said:

You guys are seriously undercharging for 1120S.  I can whip one out in an hour if the info is good from the client.  But, it took me YEARS to be able to do that.  No Turbox program is out there for these returns.  No franchise tax company is going to charge less than $1200.  It's not like the competition costs less, and over time these returns are easy for us, but it was LONG HARD WORK for us to get to the point where it became easy.  

B:

That is different discussion...  And one we have had around here before. 

If you are getting you butt kicked with the hours you work and you are not making money, you need to raise your rates.

If your neighborhood, or your community only supports what we can charge, then that is an appropriate rate.

Mine go up some every year, and some years, I raise stuff across the board, and some get the PITA surcharge.  I have a lot less of those now.

I am good with where my rates are.

Rich

That fee I quoted does not include the S-Corp.  Only the 1040.  Another $600-750 for the Scorp if it was straight.

Rich

Bulldog:

Outside of the 5 out of state rentals, I have lots of these.

The form 6198 is the kicker.  I charge a lot of that form.  The fees from that one pays all the liability insurance....

I would be about $750 for that.  My ATX Forms invoice might come out to $2,100 for that.

Where did you end up?

Rich

Just going back to Ryan's original Statement:

Quote

I was just curious on how everyone printed their electronic version of the client copy of individual tax returns. I organize mine like this:

This is where after 13 years with ATX, I would like a little more flexibility over what goes where.

My electronic copy of the return is the same thing that the client gets on paper.  I just move the 8879 and state Efile forms to the bottom of each stack, but do not bother moving them in the electronic file.  Why bother.  But it would be great if you could move them before hand, but you can move across "types" in the print screen.

I do not understand why you would put the Engagement Letter at the top like that.  Not easy to move, but I would put it after all the returns.

Then I scan all the info that I feel needs to be scanned, including any pages from the organizer that they write on, and that is my file copy.  And when they ask for a copy, they get it all.

And as for using the file in ATX as your "master" copy?  When I worked for someone else, at pickup, the client wanted to know the difference in his taxes if the $10k gain that was happening the next year would look like...  So the boss put it into the "Master" file, but forgot to reverse that entry, and that is the return that got efiled.   The Client did not understand 6 weeks later why they got a notice for taxes due instead of a refund...

Rich

Sure, talk on your cell phone all you want.  My billing timer is still going.  Just like a Taxi, the fare keeps increasing whether we are moving or not.

And when my office phone rings, they like to ask me "Are you going to take that?"  "No.  I am here with you now."

Rich

A duel over tax software?

Cool.  Abby, I can be your second.  Although I think Rita and I will be drinking Margarita's.

One Question.  When was the last time anyone got a check from any software vendor for using their products? 

I would move to Drake if ATX pissed me off one more time like they did in 2013. 

But when I test drove it, I would call it Mickey Mouse.  Doesn't mean it doesn't do what it is supposed to do, just doesn't do it elegantly.

Rich 

11 hours ago, SaraEA said:

The IRS says the income should be taxed to the person who received it, regardless of what SS# it's reported under.  The withholding, though, cannot be passed through to beneficiaries. If he puts it on his personal return the IRS will object because it will have no record that he had that amount withheld.  The deceased person cannot file a tax return, period.  WalMart should issue a new check; their legal dept will choose whether to him or to her estate.  If to the estate, it will have to file a return to receive the refund, he'll have to deposit it into the estate account and then write himself a check.

If the federal and state withholding amounts are small, perhaps he can deposit the check into the joint account, report the income on his personal return,  and just forgo the refunds.

Of course the IRS wants who ever received the money to pay the tax.  It seems sort of stupid that the Attorneys who brought this case, and who made millions, could not have sent along some paperwork to the person getting the money, i.e. the dead wife, making sure she was still alive, and if not, how to send out the $$ in that case. 

Would have made this a lot easier.  1099-Misc, box 3 for other income for the wages, and 1099-INT for the interest, both to the surviving spouse. 

I can nominee the income to his return, and then paper file a return for her, MFS or single and him as surviving spouse, and hope to get the $250 in withholding between fed and state.

Rich

Ron:

He did contact the attorneys handling the case.  Was told to deposit the checks. 

She was still listed on the accounts for that matter, although it has been 4 years.

Rich

I have a taxpayer who is a widower.

Wife worked for Wal-Mart for many years prior to her death.

Seems that WalMart didn't follow the rules about overtime, and 6 years later, Wal Mart sends Wife a settlement check.

But she is dead.  Widower cashes the checks(s).  One for interest on the money, one for the net paycheck.  About $1,500 for each check.

I now have a W-2 with fed and State Withholding, and a 1099-Int, all in the dead spouses name. 

There is not a lot of difference in the tax,  taxpayer is a straight shooter, "If I owe the tax, I will Pay the tax"

Should I just file a single return for the wife on paper, have him sign it as surviving spouse, and get the withholding back?

And file his return like I would have anyway?

Rich

And I am certain when they find you, you will give them a well deserved hug.

LOL

5 hours ago, Abby Normal said:

One question I couldn't find the answer to was, if you sell an easement for less than FMV can you take a charitable contribution for the difference?

If the easement was worth $500k.  Development rights, for example, and then you sell them to a qualified charity for $300k, then you might have a $200k charitable contribution.

That is why you need the appraisal.

Rich

You talk to the people who got the money.

They own the land, and the property.  Their basis in that property is reduced to zero, and then whatever is left over is subject to tax for the sale of the easement at capital gain rates.

If they have basis of $200k in the property, then they are free and clear, Otherwise the rest is taxed.

I have one in 2017 who sold an easement for $800k, with a basis of $400k...  The taxman cometh...

Was an appraisal done?  Could there be a charitable contribution of some sort?

Rich

Did the cite continue to state: 

The earner with the highest AGI is supposed to claim all the children?  Thereby limiting CTC, EITC, and the various other credits that could be claimed by the lower earner?

Rich

I have a 12 to 15 minute commute.  Depends on the buses, and if the High School is arriving for class in the morning.

Rich

With this years software...  Just clearing all the right boxes on the 8867 for anyone entails a $150 fee.

It goes up from there.

But, I would give her papers back and say "see ya!"

Rich

I am with you Joe...Let us turn off the Blue Triangles.

I know how to search if I need too.  I do not need to be reminded on EVERY line item.

Sheesh.  Stupid programmers.

I can build it, I don't have to use it...

Rich

WI:

Ok.  Someone referred you someone who needed help.  Nothing wrong with that.  I would send them a thank you for doing that.  

The actual person?  Maybe they were crazy.  Sorry that they are having medical problems.  Sorry that she thinks the best thing that they can do is get into the insurance exchange and have the government pay for her cancer treatments, and her son's dialysis. 

Cry me a river. 

There are times when I can seem pretty harsh.   If she was in my office, I would have sent her on her way.  I *can't* help you to commit fraud.  I *can't* help you if you don't really want to be help, and you want something that you *can't* have.  Which is free money from the government and you don't want to pay your share...

Rich             

If it was sold due to a road expansion, whatever, couldn't she rollover the money into a new property without tax?

Somedays... I wish I had a TurboTax Account.

I already deleted the email I got.

Rich

You can call the "terms" in the contract anything you want...

The $795 can be called "rent", but it is just part of the purchase price.  IF I was the buyer, the whole thing sounds like a bad deal, and maybe they want to get out.

You have a simple installment sale.  Unlike a "normal" real estate settlement, title to the property does not pass until the property is paid for, and that does not happen, in this case, for 3 years.  And it may not happen if the buyers back out, but the buyers lose their investment.

Your client, the seller LLC, are playing the buyers like every late night shill about how to get rich in real estate.....

The LLC can not have it both ways.  They had a rental for at year, then they did an installment deal with the buyers.  Treat it that way until the deal changes.  Your client may not have any idea what they did, and may change things if they feel they are getting some sort of advantage, but hey, that is not unusual.

Rich

"What do you mean! We owe tax! The attorney said we could do this! and avoid probate if he died!"

Sheesh.

Rich

Will this work on rolled over forms from the prior year?

Or just newly created returns, or newly added forms?

Seems it has been available since 2014...

Rich

An insurance agent who actually reads insurance policies?  Wow.