BrewOne

unfortunately, they will probably have to call the IRS.  Client (who I did not have 2848 on) used direct pay on 4/11 received one (CP14).  Since it had been 8 weeks, I recommended she call: the number on the notice didn't even work, (800)829-1040 was overwhelmed but she kept trying at 7:00 a.m. and got through.

I don't know how this would happen with properly attributed direct pay but at least she had a confirmation number.  Those who mail in checks...kind of like Coach Bo Schembechler's comment on the forward pass:  Three things can happen and two of them are bad.

does anyone have a cite for FBAR record retention requirements?  I would assume that FINCEN will require the same for the BOI.  I feel certain I read once that it was 5 years but now I can't find the source.

would be an interesting interview with the IRS after they apply--signing a form (4361) that you are a conscientious objector to receiving Social Security while receiving Social Security.

yes, deals I've seen involved multiple years.  I like the premise of paying a percentage of the revenue the new clients brought in, but it does involve trust.

I inherited another practice from an office mate at no charge; they were only concerned with where their clients would land.  However, I ended up paying rent on extra space for a year as they gradually moved their stuff out. 

had a colleague across the hall from my office who was getting out and wanted to refer all his clients to me.  Money was never brought up until the last minute, when he inquired as to his compensation.  I said I'd pay him 20% of the fees I collected from his clients who had me prepare their taxes (first year only).  Funny moment when I provided him with a spreadsheet, he wanted to know why I hadn't charge this particular client more--I said that it was a really simple return and he responded, "Yes, but he was USED TO PAYING MORE." 

glad to hear that it's coming from a lawyer.  We have to watch out for practicing law (and what our insurance will cover).  And this is much better than the usual scenario where the client tells you in March what they did last June.

I would take a step away from advocating the creation of a corporation--just give advice on pros and cons from a tax perspective and tell them to confer with a lawyer.

I don't like the sound of that Lee.  I have never let my ATX subscription lapse, but if I did, I didn't think I would lose access to a year that I had paid for.  I can see them not cooperating with file restoration if you're not a customer, but I assumed (I know, never assume), I could load up ATX for a certain year and upload my backup into it.

sometimes a poor memory helps us return to an activity (like running marathons).  So sorry about your vision issues,

https://www.revenue.wi.gov/DOR Publications/pb109.pdf

appears to me there is no requirement to match Federal filing status, as long as you qualify for the status claimed.

I just sent notice to all my clients who don't have IP PIN's (and who I thought could navigate the ID.me process) encouraging them to sign up.  Was a recent statement from the Taxpayer's Advocate Office that it's taking around 20 months to get a refund if someone else files under your SSN.  The IRS has gotten pretty good at catching fraudulent returns, but the actual taxpayer's return still can't be e-filed.

I gave my clients a heads up about the calendar nature of the IP PIN's--those who sign up now will get a PIN for 2024 that won't be valid for their 2024 return--now that's not confusing, right?

I avoided collecting DL info except for clients getting a State refund.  Like Lee, I would like to limit personal information in my computer, but two (three?) years ago several of my clients' refunds were held up by the IRS for verification, so I started collecting them on anyone getting a refund.  It is something of a pain to re-enter every year in ATX, so thanks for the tip.  I figure as long as the license is not expired, should be good enough for the IRS. 

must be tied to inflation and the way the numbers are rounded off.

For the 2022 tax year, checking in October 2023, I found a 1099-NEC where my client's SSN was being used in California.  I also found a very large 1099-K for a client where her organization had mistakenly given her SSN to Square instead of the organization's EIN.  Lastly, I found a 5498 for a 74 year old client who had never taken money out of a Traditional IRA.  None of these clients had heard from the IRS.

So, this fall (from the Transcript Delivery System), I'll request the 2023 "Record of Account" and "Wage and Income"--looking for zeroes on the Record of Account (negatives are good, that's money owed the taxpayer), and I'll note when the refund was funded or tax paid date. 

Wage and Income: I don't try to go through all the stock transactions, but make sure that other forms match up.  If a 5498 is present, I'll look at the client's age and whether RMD's were present or if they soon will be required.

Obviously, I don't do these all at once.  takes me awhile--after October 15 is a good time to start.

right.  I was hopeful that TAS might have a memo on the notices, but it appears that their website is only providing generic info.

But I'll use this as another opportunity to beat the drum to go ahead and procure 8821's from your clients before an apparent need arises.  I have them on about 75% of my clients and I know of at least one preparer who requires an 8821 from all his clients.  I go through and check all of mine in October to see if there are any surprises waiting for my clients.  There are also companies who will monitor all this for you (if you've checked the 3rd party box on the 8821). Roger Nemeth (Bill's son) in Havana, FL has such a business.

you can input the notice number at the Taxpayer's Advocate office, might give you some info if this is a widespread issue.

https://www.taxpayeradvocate.irs.gov/notices-from-the-irs/

I thought the resumption of past due notices was for 2022, not 2021.

don't know if anyone else has experienced this, but I had a number of clients in the past two years whose wage withholding dropped and they told me they didn't change anything at work.  Not knowing what their payroll department is up to, I usually advise an additional $ amount based on how often they are paid, rather than try to rework a W-4.

for retirees who owe, I usually print out a W-4V for them to file with Social Security.  Although not ideal (often 12% is too little and 22% is overkill), it is an easy method of getting more withheld.  The State of Florida used to have a surprisingly simple W-4P form but that went by the wayside.

But sometimes all we can do is point out how much they are paying in interest and that it is currently at 8%.  You can lead a horse to water...

Pat Dimmitt over at the NAEA site in February commented that the rules remain in proposed form and therefore sticks with a previous opinion:

Quote

I do not believe there is substantial authority to treat the payments as medical insurance for purposes of the deduction allowed under IRC § 162(l)(1).

for Federal--from IRS tax topic no. 602:

Quote

Physically or mentally not able to care for oneself - An individual is physically or mentally incapable of self-care if, as a result of a physical or mental defect, the individual is incapable of caring for his or her hygiene or nutritional needs or requires the full-time attention of another person for the individual's own safety or the safety of others.

Facts and circumstances...

I wonder if dentists and veterinarians have these kind of discussions?  They don't hesitate to raise their prices--maybe they don't hear the kind of feedback we get from our clients?

IMO, changing software should only be done as a necessity (i.e. the program being discontinued) unless you are prepared to put in a large amount of work. Drake just looked around and saw what others were charging for what they offered.

A robust program is going to be fairly pricey but you'll need it for recreating returns and when you get into the weeds.  Less expensive (like OLT) will work great for 85-90% of your clients but...the other 10-15% are probably your best paying clients.  I also found when I tried them that they don't reproduce returns from other programs, just creates a basic framework with name, social, etc.

 Amen; I hated cleaning up Turbotax returns with a passion.  And I inherited one client who only wanted me to review his work in Turbotax for a nominal fee--I did it once (the 1116 was a total mess) and when he came back next year I doubled the price.  Thankfully that was the last I saw of him.  But funny how proud he was of his work, I think he just wanted me to congratulate him.

if you use the Foreign income worksheet instead of a 1099-R worksheet, should be able to e-file

maybe file 8821's for all those clients and wait until they need representation (and that you want to represent them) for the 2848's?  just a suggestion